BEIJING, Sept 14, V7N – China's economic recovery hit a slowdown in August, with retail sales and industrial production both missing expectations, according to new data from the National Bureau of Statistics (NBS). Retail sales grew by 2.1% year-on-year, down from 2.7% in July and below the 2.5% forecast by analysts. Industrial production also saw a decline in growth, slowing from 5.1% in July to 4.5%, undershooting Bloomberg's predicted 4.7%.

This slowdown comes as Beijing continues to grapple with a challenging economic landscape, including a prolonged property sector debt crisis, deflationary pressures, and rising unemployment. Unemployment ticked up to 5.3% in August from 5.2% the previous month.

Despite lifting Covid-19 restrictions more than a year ago, the world’s second-largest economy has struggled to meet its expected post-pandemic recovery. As Beijing works toward achieving its 5% growth target for 2024, challenges remain significant. The NBS acknowledged that domestic demand remains weak and external economic conditions are worsening, casting further doubt on recovery efforts.

Adding to the economic pressures, Beijing recently raised the national retirement age, an attempt to address challenges posed by a declining birth rate and an aging population.

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