The Facts
China's economy grew more slowly than expected in the second quarter as youth unemployment hit a record high of 21.3%. Official data released Monday says that gross domestic product (GDP) expanded by 6.3% year-on-year, up 0.8% during the Q2 compared with the previous quarter.
China's GDP figure contrasts with 2022 — when Beijing enacted "zero COVID" policies and brought economic activity to a standstill. Economists predicted that China's economy would grow by greater than 7% this year.
The Spin
Narrative A
Despite external challenges, China's economy has performed remarkably well this year. It has grown significantly faster than that of the world's major developed economies, demonstrating the strong resilience of its economic development. China has shaken off the impact of the epidemic and has returned to normal growth. China's economy remains strong as indicated by numerous economic indicators.
Narrative B
China's economy grew at a much slower pace than forecast in Q2, and its recovery from its recent lockdown is slower than anticipated. The world is looking at what measures of stimuli China's politburo will take later this month to address the many problems ahead. The record youth jobless rate and down-trending property sector are real causes for concern.
