Skip to main content

Macroeconomic outlook report: China

Second quarter of 2018

During the second quarter of 2018, China's GDP slowed its year-over-year growth rate by 0.10 p.p. when compared to the previous quarter, to 6.70%. This performance was mainly due to the trade tensions on the international scene, with a negative contribution from net exports. As for inflation, CPI growth decelerated by 0.34 p.p. when compared to 1Q18, to 1.83%. In the labor market, the unemployment rate fell by 0.06 p.p. to 3.83%. Finally, the renminbi depreciated against the US dollar by 0.29 RMB/USD, to an average exchange rate of 6.61 RMB/USD in the second quarter of the year.

Macroeconomic overview

  • During the second quarter of the year, the Chinese economy slowed its year-over-year GDP growth rate by 0.10 p.p. to 6.70%. Domestically, this was mainly due to the deleveraging process in which the Chinese economy finds itself, while in the external context, net exports contributed negatively to GDP growth.
  • In the labour market, the unemployment rate fell by 0.06 p.p. from the previous quarter, to 3.83%.
  • The renminbi depreciated against the US dollar by 0.29 renminbis per dollar in the second quarter of 2018 with respect to the previous quarter, recording an exchange rate of 6.61 RMB/$. This depreciation was mainly attributed to the trade tensions with the US as well as to the increase in interest rates by the Fed.
  • Inflation stood at 1.83% in the second quarter of 2018, after a slowdown of 0.34 p.p. from the previous quarter, mainly due to lower growth in food prices.

For more information, click here to access the executive document in pdf.

© GMS Management Solutions, S.L., 2018. 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.