There is a steep fall seen in China’s economic market as compared to the first three months of the current year. This growth has halved in this quarter. The recovery momentum was highly affected by the slow manufacturing, higher costs of the raw materials and new COVID-19 outbreaks. It was expected to rise by 8.1% in a Reuters poll of economists.
After the COVID-19 crisis, the world’s second-largest economy bounced strongly but experts suggest some loss to be momentum. Quarterly Gross domestic product (GDP) in the April-June period expanded to 7.9%, the National Bureau of Statistics said it just beat the 1.2% rise in the Reuters poll.
The investors of the central bank are waiting for an easier policy stance after the People’s Bank of China announced a move regarding the cut in the amount of cash that the bank will be holding as reserves. The amount of about 1 trillion yuan ($154.64 billion) in long-term liquidity to bolster the recovery. The Reuters poll expects a further cut in the bank reserve requirement ratio (RRR) in the fourth quarter. The growth significantly slowed from a record 18.3% in the first period of January-March. The senior economist for Asia states that it is because demand for the U.S. inventories is at its peak.