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Macroeconomic outlook report: China

Second quarter of 2019

During the second quarter of 2019, Chinese GDP decelerated its year-over-year growth rate by 0.20 p.p. with respect to the previous quarter, standing at 6.20%. Regarding inflation, CPI registered a year-over-year growth rate of 2.67%, which was 0.84 p.p. higher than the rate recorded in the previous quarter. In the labor market, the unemployment rate decreased by 0.06 p.p., standing at 3.61% rate. Finally, the Chinese Renminbi experienced a depreciation of 0.13 RMB/$ against the dollar during the second quarter of 2019, reaching a rate of 6.83 RMB/$.

Macroeconomic overview

  • Chinese GDP y/y growth rate slowed by 0.20 p.p. with respect to 2Q19,standing at  6.20% during 2Q19.
  • On the domestic front, Chinese authorities have taken steps in response to the growth slowdown amid the unsettled trade war with the US, by unveiling a number of monetary and fiscal measures to stimulate domestic demand.
  • During the second quarter of 2019, the unemployment rate decreased by 0.06 p.p. when compared to 1Q19, standing at 3.61% rate.
  • The RMB depreciated against the US dollar during the 2Q19, reaching an average exchange rate of 6.83 RMB/$, which represented a depreciation of 0.13 RMB per dollar (+1.94%) when compared to the previous quarter.
  • Regarding inflation, the CPI growth registered a speeding up of 0.84 p.p. when compared to the previous quarter, reaching a growth rate of 2.67% during 2Q19.

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© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.