During the second quarter of 2022, China recorded a positive rate of change in the GDP for the ninth consecutive quarter of 0.40%; however, this rate was a significant reduction of 4.40 p.p. compared to 1Q22. In terms of inflation, the CPI registered a year-on-year growth rate of 2.23%, accelerating from the rate observed during the previous quarter by 1.13 p.p.. On the labour market, the unemployment rate increased to 5.80%. During the second quarter of 2022, the Chinese Renminbi depreciated by RMB 0.32/$ against the US dollar, bringing the exchange rate to RMB 6.66/$.
Macroeconomic outlook report: China 2Q22
Macroeconomic overview
- The year-on-year growth rate of Chinese GDP experienced a significant reduction compared to the levels of the previous quarters. The year-on-year rate of change of GDP contracted by 4.40 p.p. compared to 1Q22, and stood at a rate of 0.40%.
- During 2Q22, the unemployment rate increased by 0.30 p.p. compared to 1Q22, standing at a rate of 5.80%.
- In addition, the RMB depreciated against the US dollar during 2Q22, reaching an average exchange rate of RMB 6.66/$, representing a depreciation of RMB 0.32 per dollar compared to the previous quarter.
- As for inflation, the year-on-year CPI growth registered an increase of 1.13 p.p. from the previous quarter, to register a growth rate of 2.23% during 2Q22.
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