China's economy grew faster than expected in the second quarter, the latest sign that it's on course for the mythical V-shaped recovery
- China's economy grew by 3.2% in the second quarter of the year, beating Reuters economists' estimates of 2.5% growth.
- This comes after the economy faced a sharp contraction of 6.8% in the first quarter of the year.
- While growth in general was stronger than expected, consumer spending didn't bounce back as forecast.
- Economists had expected retail sales to rise by 0.3%, but they fell 1.8% year-on-year in June.
- As the first country to face the coronavirus, China's economic recovery is much further along than most nations in the Western world.
China's economy grew by 3.2% in the second quarter of the year, signalling that the country may be on course for a V-shaped recovery and its darkest days from the virus may be over.
This is higher than the growth Reuters economists were polling at 2.5%.
In April, the country's reported its economy shrank by 6.8% in the first three months of the year, marking its first contraction in 28 years.
The National Bureau of Statistics for China said in a statement: "Given the continuous spread of the epidemic globally, the evolving huge impact of the epidemic on the global economy and the noticeably mounting external risks and challenges, the national economic recovery was still under pressure."
Earlier this month it emerged China's Caixin Services PMI hit its highest level in a decade in June as economic activity continues to pick up in the first country hit by coronavirus.
China's manufacturing activity also rose to a six-month high in June.
But even though the economy grew in the second quarter of the year, retail activity still remained subdued.
China's retail activity fell by 3.9% year-on-year in the second quarter. This marked the fifth consecutive decline in China's retail activity.
In June, the total retail sales of consumer goods declined year-on-year by 1.8%. Reuters economists were expecting retail sales to increase by 0.3%.