Current Status of China's economy and countermeasures 

Jihyun Jung

Korea Institute for International Economic Policy

jhjung@kiep.go.kr

     Since the Chinese economy recovered slightly in the first quarter of 2023 led by service production, consumption, and exports, the world was raising expectations for China's reopening effect. However, as major economic indicators such as production, consumption, investment, exports, and unemployment worsen in the second quarter, China's GDP growth rate remains at 6.3% in the second quarter, far below the market forecast (7%) compared to the same period last year. Investment growth has also been slowed down as well as production and consumption growth, which improved in the first quarter, and export growth turned negative. Manufacturing PMI has been sideways below the 50 mark throughout the second quarter, while non-manufacturing PMI fell sharply from its peak in March to 51.5% in July. The unemployment rate for young people (16-24 years old) increased to 21.3% (July) for the first time since the first statistic published in 2018.​