Real estate and job worries slow China’s economy

  • China’s recovery slowed markedly last quarter as persistent weakness in the real estate market rippled across a broad swath of the economy, weighing on profits and the job market and leaving nervous consumers reluctant to open their wallets.
  • Seasonally adjusted gross domestic product for the April-June period rose 0.8% from the previous quarter, according to data released Monday. The drop-off from the first quarter’s 2.2% growth underscores a slowdown in the recovery that followed the end of the government’s zero-COVID policy in January.
  • Real estate and related industries have been estimated to generate about 30% of China’s GDP. Poor housing sales are driving down production of construction materials, as well as purchases of appliances and other durable goods that homebuyers typically buy when they move.
  • The situation has taken a toll on young workers in particular, with unemployment among those aged 16 to 24 reaching a record 21.3% in June.

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