The latest figures were affected by a low base of comparison last year, when Shanghai and other big cities were in strict lockdown.
The economy expanded by 5.5% in the first half of the year thanks to activity in the service sector, which includes travel and lodging as well as information services. The retail sector expanded 8.2%, compared to 0.7% for the same period last year, thanks largely to income from catering.
In June alone, indicators showed a mixed picture: retail sales rose much softer, industrial output growth increased for the 14th month, and the urban jobless rate was unchanged at 5.2%, but youth unemployment hit a new high of 21.3%.
National Bureau of Statistics spokesperson Fu Linghui noted that China faces a complex geopolitical and economic international environment. He also said China can still achieve its full-year growth target. Beijing set a goal of around 5% growth for 2023 in March.
The outlook is modest after the economy expanded by 3% in 2022, one of the weakest annual performances in decades, and missed the government’s target of about 5.5%.
But Beijing has otherwise shown reluctance to embark on greater stimulus, especially as local government debt has soared. A Politburo meeting expected later this month could provide more details on economic policy.
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