New Delhi: The Chinese economy continued to widen its gap with India in terms of GDP growth, according to data shared by the Beijing National Bureau of Statistics. China’s GDP growth was down to 4.7 per cent in the second quarter of FY25, from 5.3 per cent in Q1. The Chinese economy underperformed in comparison with the 5.1 per cent Q2 growth forecasted by Bloomberg and the Economist.
Why is China’s GDP declining?
China’s GDP is down on account of a decline in consumption-related sales. According to the official data, consumption was down to 2 per cent in June from 3.7 per cent in May 2024, which shows that consumption almost halved during the period under consideration.
The country’s real estate sector has witnessed several defaults with giants such as Evergrande Group failing to repay their debt. China’s woes have been compounded by the trade war with the US and the larger Western bloc. At the same time, India has overtaken China as the world’s most populous country, indicating a decline in the dragon nation’s population.
All about India’s GDP growth
India’s Q2 GDP growth was 7.6 per cent compared to 7.8 per cent in the first quarter. Meanwhile, consumption stood at 3.8 per cent in June 2024. In contrast with China, India’s real estate sector has witnessed strong growth owing to a significant uptake of high-end properties.
Going forward, the Indian economy is expected to grow at 6.7 per cent in FY25, according to the UN. This will be a portmanteau of 6.9 per cent GDP growth in 2024 and 66 per cent in 2025, according to the UN’s World Economic situation and Prospects report.
Earlier this week, Moody’s maintained a 6.8 per cent growth forecast for India in 2024, up from 6.1 per cent earlier, compared to an aggregate EM forecast of 3.9 per cent. To be sure, inflation jumped back above 5 per cent to 5.08 per cent in June, delaying the disinflation trajectory chalked out by RBI. Despite these hurdles, India is projected to be the fastest-growing major economy in the world, according to multiple forecasts.
China recorded a 4.7 per cent GDP growth in the second quarter of FY25, according to the Beijing National Bureau of Statistics. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
