July 27, 2021
Economy

China Q2 GDP: The economic recovery is flashing some warning signs

In the first quarter of 2021, China posted record GDP growth of 18.3% compared to a year prior — although that was largely because the country experienced an historic contraction early last year because of Covid-related restrictions. Compared with the first quarter of 2019, GDP increased 10.3%.

After a slump in the first three months of 2020, China’s economy started to recover as it was boosted by state-led investments in massive infrastructure projects and surging overseas demand for medical supplies and electronics.

But the Chinese economy has flashed some troubling signs in recent months. Record commodity prices drove factory inflation to the highest levels in more than a decade, while supply chain disruptions caused by shipping backlogs and an energy shortage held back factory production.
Growth in the services sector also slowed, as a Covid-19 outbreak in southern China and…

Read full article here: www.cnn.com