<div style="text-align: justify; "><span style="font-size: 1rem;">China's economy grew 6.3 percent year on year in the second quarter, a figure that belies the country's slowing post-pandemic recovery and one that analysts warn is inflated given the low base of comparison with lockdown-wracked 2022.</span><br></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Beijing's National Bureau of Statistics (NBS) released the growth data on Monday, saying in a statement that the economy "showed a good momentum of recovery".</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"By quarter, the GDP grew by 4.5 percent year on year in the first quarter and 6.3 percent in the second quarter," NBS spokesman Fu Linghui said.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"Market demand gradually recovered, production supply continued to increase, employment and price were generally stable, and residents income grew steadily," he said.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">But China's recovery, which has been slow to take hold in some sectors, appears to already be running out of steam.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Analysts polled by AFP ahead of the data release had predicted a 7.1 percent year-on-year rebound, while warning that the figure would not accurately reflect the state of the economy given the comparatively sorry state of affairs in 2022.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">A year ago, with restrictions such as sudden lockdowns, travel curbs and factory closures the norm, China posted 0.4 percent on-year growth, one of its lowest quarterly readings in recent years.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">In quarter-on-quarter terms -- considered a more realistic basis for comparison -- Monday's data showed the world's second-largest economy only grew 0.8 percent in April through June.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">That is down from the 2.2 percent growth seen from January through March, after lukewarm activity from October to December last year.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">And additional data released Monday showed the post-pandemic recovery petering out, likely to boost growing calls for greater economic stimulus.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Retail sales, a key gauge of consumption, edged up 3.1 percent in June from a year earlier, according to the NBS, slowing from the 12.7 percent rise in May.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">It was in line with expectations of analysts polled by Bloomberg, but signalled shaky consumer confidence.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"Consumption remains a driving force for the economic recovery," Erin Xin, Greater China Economist at HSBC, told AFP.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"In some areas, particularly in services, the revival has been particularly strong," she said, adding that consumption levels had not recovered to pre-pandemic levels.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Unemployment among Chinese youth also jumped to a record 21.3 percent in June, up from 20.8 percent in May, the NBS said on Monday.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Low demand means companies are hesitating to hire, taking a "wait-and-see" attitude before expanding operations, said Harry Murphy Cruise, an economist at ratings agency Moody's.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Memories of 2022's repeated lockdowns and suddenly shifting policies were adding to their hesitancy, he said.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"Unfortunately... a revival in business activity is needed for broader demand to lift. That stalemate is keeping business activity weak," he added.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">China is aiming for about five percent growth this year, one of the lowest targets set by the Asian giant in decades.</div><div style="text-align: justify;"><br></div><div style="text-align: justify; ">Last year, China's GDP grew 3.0 percent, well below the official target of 5.5 percent.</div><div style="text-align: justify; "><br></div><div style="text-align: justify; ">bnbd24/kh</div>