“China’s Economy Loses Momentum in Q2: Industrial and Retail Sales Fall Short of Expectations After COVID-19”

BEIJING (Reuters) – China’s industrial production and retail sales grew less than expected in April, suggesting the economy lost momentum at the start of the second quarter and piling pressure on politicians to support a shaky post-COVID-19 recovery.

Data released by the National Bureau of Statistics showed that industrial output grew 5.6 percent in April compared to a year earlier, accelerating from 3.9 percent in March. But it is far below expectations for a 10.9 percent increase in a Reuters poll of analysts, although it represents the fastest growth rate since September 2022.

Retail sales jumped 18.4% from 10.6% in March, its fastest increase since March 2021. Analysts had expected retail sales to grow 21%.

Other data released last week showed that imports contracted in April, and bank loans declined more than expected, indicating weak domestic demand, which intensifies pressure on policymakers to support the economic recovery as global growth falters.

China’s central bank kept interest rates unchanged on Monday as expected, but markets are betting on more monetary easing in the coming months.

(Prepared by Ali Khafaji for the Arabic Bulletin)