China’s official GDP growth dropped marginally in Q2 to 6.7% yoy, versus 6.8% yoy in the preceding three quarters, remaining above the 6.5% target for 2018, notes Arjen van Dijkhuizen, Sr. Economist at ABN AMRO.
Key Quotes
“The slowdown reflects the impact of the financial deleveraging campaign – with for instance a crackdown on shadow banking – and a slowdown in infrastructure spending. The growth contribution of consumption rose further to 78.5% in 1H2018, illustrating the ongoing rebalancing.”
“Given the lack of volatility in official growth, we look to alternative indicators including Bloomberg’s monthly GDP tracker.”
“We expect China’s gradual slowdown to continue in the coming quarters, with external risks rising as tensions with the US escalate.”
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