GDP growth slowed to 1.8% in the second quarter, down from 2.6% growth a quarter earlier. Weaker performance of the retail sector, driven by slower growth in tourist visits and spending, in addition to reduced domestic spending and investment, continue to weigh on the economy. The decline in retail sales is stabilizing after the effects of a high comparison base in the middle of 2013 dissipates. Retail sales grew by 3.4% year-on-year in August, the first monthly expansion since January.
Private consumption expenditure increased by a moderate 1.2% year-on-year in the second quarter. Meanwhile, labor conditions remain intact with stable wage growth and low unemployment further supporting local consumption. For the first eight months of 2014, the number of total and mainland China tourist arrivals increased by 12.3% and 15.5%, respectively.
Source : Cushman & Wakefield