The country’s gross domestic product grew at 6.2% in the second quarter, its slowest rate in nearly three decades and lower than the 6.4% recorded last quarter, according to government figures released on Monday.
And the Chinese economy will continue to face “downward pressure” in the second half of this year, the country’s National Bureau of Statistics said in a statement.
“The Chinese economy is still in a complex and grave situation,” it said. “Global growth has slowed and external uncertainties are on the rise.”
“Uncertainty caused by the US-China trade war was an important factor and we think this will persist,” said Tom Rafferty, principal economist, China at The Economist Intelligence Unit.
“Businesses remain skeptical that the two countries will reach a broader trade agreement and recognise that trade tensions may escalate again,” he added.
“While the PBOC has already delivered stimulus this year, markets are awaiting… additional measures, which will probably come if trade talks collapse,” said Edward Moya, a senior market analyst at Oanda. “If talks steadily progress, we will still probably see the [bank] deliver fresh stimulus following the Fed’s highly anticipated rate cut at the end of the month. “