ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

China surprises with key rate cuts to boost struggling economy

July factory output and retail sales weaken, youth unemployment hits record high

Workers eat lunch at a construction site in Beijing. China's economy has struggled in the wake of repeated COVID-19 lockdowns.   © Reuters

SHANGHAI -- China on Monday announced surprise interest rate cuts in a bid to boost its struggling economy as industrial production and retail sales weakened while youth unemployment hit a record high.

The world's No. 2 economy has yet to gain a solid footing and narrowly avoided a second-quarter contraction, as repeated lockdowns under China's strict zero-COVID policy weigh on activity with factory output and consumer spending struggling to mount a strong recovery.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more