Economic growth in China is clearly slowing down

China was the first country whose economy recovered rapidly after the corona slump. Other countries followed later. It is therefore not a good sign that economic growth in the world's second largest economy is clearly slowing down - because that shows where the global economic journey is headed. China's growth likely slowed to about 8 percent year-over-year in the second quarter and could weaken to just over 6 percent in the third quarter and as much as 5 percent in the final quarter of 2021. Wang Yiming, a member of the monetary policy committee of the People's Bank of China (PBoC), said in an interview with state media, preparing the public for official data, which will be released on Thursday. To put it into perspective: China's economy had grown by more than 18 percent in the first quarter - the year before the pandemic had caused a severe slump. It was clear that this pace could not be sustained. But the strength of the braking comes unexpectedly. Economists generally assume that growth will continue. Exports and real estate investment are still the mainstays of the economy, while the recovery in consumption and investment in manufacturing is still sluggish. As China's vaccination program advances, however, consumption should gain more momentum, it is said. But China's central bank last week gave the banks more leeway for lending - a clear sign that the PBoC wants to give the economy a bigger boost. As of Thursday, banks will have to hold less capital than minimum reserves. This should free up around one trillion yuan (equivalent to almost 130.4 billion euros) in liquidity.