Beijing (AFP) – Chinese retail sales and industrial production growth slowed in August, official data showed on Saturday, as leaders in Beijing seek paths to achieve growth targets despite consumers’ reluctance to spend.
More than a year and a half since abolishing strict COVID-19 measures that had dampened activity, the world’s second-largest economy has yet to achieve a highly anticipated post-pandemic recovery.
A prolonged debt crisis in China’s vast property sector, continued deflationary pressure and high unemployment are among the factors now weighing on investor confidence.
In August, retail sales increased 2.1 per cent year-on-year, slowing from 2.7 pe rcent in July, according to data released by the National Bureau of Statistics (NBS).
The figure also came up short of the 2.5 per cent growth forecast by a Bloomberg survey of analysts.
Year-on-year industrial production also slowed, NBS data showed, dropping from 5.1 per cent growth in July to 4.5 per cent in August.
The Bloomberg forecast had anticipated industrial production to grow 4.7 per cent last month.
The new figures are a worrying sign that efforts this year to spur the Chinese economy have not had a major impact, as Beijing looks for ways to achieve its goal of five per cent growth in 2024.
“Adverse effects of current changes in the external environment are increasing, domestic demand is still insufficient, and the economy is still facing many difficulties and challenges in its continued recovery,” the NBS said in a statement.
Unemployment edged upwards to 5.3 per cent in August, NBS figures also showed, compared to 5.2 per cent in July.
Saturday’s data release comes one day after Beijing announced a long-anticipated rise in the national retirement age, as birth rates decline and hundreds of millions of people approach old age.
China’s total population fell in 2023 for the second consecutive year, with experts warning of severe impacts on the economy, healthcare and social welfare systems if action is not taken.
