China Data Show Economy Shrinking in Challenge to Xi's Target [Business News Network (BNN) (Canada)]
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statistics under fresh scrutiny as analysts bet the government will avoid acknowledging that slump. The consensus forecast from economists in a Bloomberg survey is that the government will next week report gross domestic product grew about 1.5% in the second quarter from a year earlier. Yet high-frequency data for June and losses in the previous two months suggest the economy contracted over that period due to the lingering effects of lockdowns in dozens of cities. A quarterly drop in GDP, which has only happened once before, underlines China's slower rebound from coronavirus curbs than in 2020, providing less of a boost to a struggling global economy. Debate about the accuracy of official data will likely persist this year as President Xi Jinping urges officials to strive to meet an ambitious target for annual GDP growth of about 5.5%, while at the same time sticking with a Covid Zero policy that requires tough restrictions wherever virus cases emerge. “There is no plausible st
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