China accounts for about a fifth of the world’s total economic output and any slowdown may hamper a global recovery.
In the second quarter China’s Gross Domestic Product rose by 7.6% from 8.1% growth in the previous three months.
“The Chinese economy has slowed, but it is not collapsing as many fear,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd.
The economic slowdown is partly the result of a decline in China’s potential growth rate after more than 30 years of high-speed expansion.
Analysts have fears of a so-called hard landing in China’s economy and its subsequent impact on the rest of the world.China is the world’s largest exporter and it is currently being hard hit by the slowdown in Europe and elsewhere.
U.S. companies are feeling the effects of China’s deceleration. Advanced Micro Devices Inc. (AMD), the second-biggest maker of processors for personal computers, this week reported an unexpected drop in quarterly sales in part because of weakness in China.