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China's Economy Shows Resilience Amid Trade Tensions, Growth at 5.2 Percent in Second Quarter

Strategic Insights

— 1 min read

China's economy expanded by 5.2 percent in the second quarter of this year, a better-than-expected rate that has eased pressure on the world's second-largest economy. The growth was slightly lower than the 5.4 percent increase in the first quarter, but still ahead of analyst predictions. The Chinese government's stimulus measures, including boosting domestic consumption and monetary easing, have helped to cushion the economy from the effects of US tariffs. The country's exports regained momentum last month, while imports rebounded, as factories rushed out shipments to capitalize on a fragile tariff truce between Beijing and Washington.

Key Takeaways:

  • The Chinese economy grew by 5.2 percent in the second quarter of this year, a better-than-expected rate.
  • GDP growth was down slightly from the first quarter, when it expanded by 5.4 percent.
  • The growth was still ahead of analyst predictions, despite exporters front-loading trade in anticipation of US tariffs.
  • The Chinese government's stimulus measures, including boosting domestic consumption and monetary easing, have helped to cushion the economy from the effects of US tariffs.
  • China's exports regained momentum last month, while imports rebounded, as factories rushed out shipments to capitalize on a fragile tariff truce between Beijing and Washington.
  • The country is aiming for full-year growth of around 5 percent, and some banks and analysts have adjusted their forecasts in response to this year's better-than-expected results.
  • Oxford Economics raised its growth prediction to 4.7 percent for 2025, up from 4.3 percent.
  • However, Zichun Huang, China economist at Capital Economics, said GDP data "probably still overstates the strength of growth," and warned that growth is likely to slow further during the second half of this year.

Statistics:

  • China's economy grew by 5.2 percent in the second quarter of this year.
  • GDP growth was down slightly from the first quarter, when it expanded by 5.4 percent.
  • The country is aiming for full-year growth of around 5 percent.
  • Oxford Economics raised its growth prediction to 4.7 percent for 2025, up from 4.3 percent.
  • The Chinese government's stimulus measures have included:

+ Boosting domestic consumption.

+ Monetary easing, with a 25 basis point cut in the five-day reverse repurchase rate in May.

+ Injecting liquidity into the financial system.

Sources:

  • The Chinese statistics bureau.
  • Reuters.
  • Oxford Economics.
  • Capital Economics.
  • Lian Ping, chairman of the China Chief Economists Forum.

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