China’s second-quarter GDP growth has fallen short of expectations, with the real estate sector and consumer sentiment taking a hit. This has raised concerns about the need for further stimulus to sustain growth.

What Happened: Allianz‘s chief economic adviser, Mohamed El-Erian on X, has highlighted a trend in China’s economic growth for the second quarter.

“Despite surging exports, Q-2 GDP expanded by 4.7% (year-on-year), shy of the 5.1% consensus forecast and down from the prior quarter's 6.1% (revised from 6.6%) due to a struggling real estate sector and its impact on household sentiment,” El-Erian wrote.