China's Economic Growth Slows to 7.9% in Q2 2021

China's economy grew by 7.9% in the second quarter of 2021 (April-June) compared to the same period the previous year (year-on-year). This growth is lower than the market prediction of 8.1% and slower than the record expansion of 18.3% in the previous quarter (January-March).

However, China's economic growth in the second quarter of 2021 was better on a quarterly basis, reaching 1.3%, higher than the previous quarter's 0.4%.

China's economic growth plummeted by 6.8% in January-March 2020 due to the Covid-19 pandemic. However, its performance began to recover in April-June 2020 with growth of 3.2%. The condition continued to improve, reaching 4.9% in the third quarter of 2020 and 6.5% in the fourth quarter of 2020.

Therefore, according to experts, the rapid economic growth in the first quarter of this year was influenced by the poor performance in the same period last year. Conversely, the economic growth rate slowed in the second quarter of 2021 because China had already entered a recovery phase in the second quarter of 2020.

The local government is now accelerating the provision and vaccination program so that the majority of the population can receive it. With this, consumer confidence is expected to increase again.