China’s economy grew just 0.8% in the second quarter compared with the first three months, indicating a fading recovery and posing risks to the global economy. The slow growth rate, along with a real estate crisis and unstable local government finances, is pressuring Beijing to reignite the economy. Weak retail sales, subdued private-sector investment, and declining exports contribute to the sluggish growth. Despite a rebound in activity following the easing of COVID-19 controls, Chinese consumers remain cautious, as reflected in low retail sales. The surveyed urban unemployment rate remained steady, but youth unemployment continued to rise, with more than a fifth of Chinese aged 16 to 24 out of work. Investment in fixed assets and industrial production also experienced minimal growth. Moody's Analytics described China's recovery as going "from bad to worse," making 2023 a challenging year for the country.
