China's National Statistics Office Attempts to Spin Declining Growth Figures Amid Real Estate Crisis
Beijing, China's national statistics office is trying to spin the latest growth figures positively. The national economy was overall stable with steady progress in the first half of the year, the authority reported, pointing to an economic growth of five percent in the first half. However, after a growth of 5.3 percent in the first three months, the world's second-largest economy only grew by 4.7 percent between April and June. The main reasons for the decline are the consequences of the real estate crisis. But also, lower government investments and weak domestic consumption are slowing down the economy. The restrained demand from businesses and households shows how great the uncertainty in the economy about future development is and that it continues to grow. Therefore, the government is now trying to spread optimism. The disappointing economic data comes at the start of the so-called Third Plenum of the 20th Central Committee of the ruling Communist Party (CPC) on Monday in Beijing. At the meeting, which traditionally takes place every five years, the guidelines for long-term economic development are approved. The weakness in growth increases pressure on the party leadership to counteract with reforms.
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