During the second quarter of 2021, China recorded a positive GDP growth rate for the fifth consecutive quarter, standing at a rate of 7.90%. In terms of inflation, the CPI registered a year-on-year growth rate of 1.10%, accelerating compared to the rate observed in the previous quarter. Regarding the labor market, the unemployment rate decreased down to a rate of 3.86%. During the second quarter of 2021 the Chinese renminbi experienced an appreciation of 0.05 RMB/$ against the dollar, and the exchange rate stood at 6.43 RMB/$.

Macroeconomic outlook report: China 2Q21

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Macroeconomic overview

  • China's annual GDP growth rate consolidated the recovery initiated in 2Q20. Nevertheless, the y/y growth rate registered a decrease of 10.40 p.p. compared to 1Q21, down to a rate of 7.90%.
  • Progress in the vaccination process has contributed to considerable economic growth in the first half of 2021.
  • During 2Q21, the unemployment rate decreased by 0.08 p.p. compared to 1Q21, down to a rate of 3.86%.
  • The RMB appreciated against the US dollar during 2Q21, and reached an average exchange rate of 6.43 RMB/$, after decreasing by RMB 0.05 per dollar compared to the previous quarter.
  • Regarding inflation, CPI growth registered an increase of 1.13 p.p. compared to the previous quarter, up to a growth rate of 1.10% during 2Q21.

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