1、August EconomicMonitorIssue:2023 Q3Key takeawaysChinas GDP grew 5.5%year-over-year(yoy)in 2023 H1,posting a steady economic rebound.In Q2,the economy rose by 6.3%,up from 4.5%in Q1,largely thanks to a low base.On a quarter-on-quarter basis,Chinas GDP plummeted to 0.8%in Q2 from 2.2%in Q1,showing a s

2、lowdown in the domestic economic recovery.With Covid-19 restrictions lifted,retail sales saw a solid recovery in H1 2023,and the contribution of consumption to economic growth continues to expand.Consumer sentiment improved modestly and the share of households indicating higher savings dropped sligh

3、tly(but remains high).Manufacturing and infrastructure investments held up relatively well,growing 6.0%and 10.7%in H1 2023,respectively.However,momentum has weakened somewhat recently.Looking ahead,investment in high-end manufacturing and the upgrading of equipment will likely continue to see robust

4、 growth.The property market recovery has slowed down since April,the growth rate of key indicators such as new home sales and property investment still declined.With the support of financing policies,the liquidity pressure of real estate companies has improved,but the land transaction market is stil

5、l in the doldrums.Chinas exports fell in H1 2023 due to the weak external demand,but still outperformed other major Asian export-oriented economies.Despite slowing exports to advanced economies,Chinas trade with emerging markets continued to rise.Meanwhile,the structure of Chinas exports is also cha

6、nging with a rising share of advanced manufacturing products.New energy vehicles(NEVs),solar panels,and lithium battery have become bright spots for Chinas exports.Overall,Chinas economy is recovering since the removal of pandemic-related restrictions,with demand gradually improving.However,the reco