China reports 6.9% second-quarter GDP growth on year, topping expectations

Andrew Cummings
July 17, 2017

"Overall, the economy continued to show steady progress in the first half.but worldwide instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains", the statistics bureau said in a statement.

The gross domestic product grew to 38.15 trillion yuan (US$5.62 trillion) in the first half, up 6.9 percent year on year.

The growth only proves the strength of China's economy despite policy makers' efforts to limit extreme and risky borrowing which causes a sluggish advancement in money supply.

Industrial production grew 7.6 percent last month, while retail sales were up 11 percent, both better than the previous month, according to the official data.


China's consistent growth also reflects the government's constant intervention as officials try to reach predetermined targets for the country's economy-currently 6.5-percent growth or better.

The Communist Party has placed top priority on securing social and economic stability ahead of the congress, which is likely to consolidate President Xi Jinping's status as the most powerful Chinese leader in many years.

"In general, we expect GDP growth to remain robust in the second half but slower than the first half, due to the high base", Citi economists said in a research note.

Beijing is trying to rein in debt and prevent new housing bubbles with active measures in the property sector and with lenders. Trade data released earlier showed export growth accelerated in May and June.


"The national economy performed within an appropriate range with more visible good momentum", the National Bureau of Statistics said.

Last year, the world's second-largest economy had its slowest growth rate in nearly 30 years, at 6.7 percent.

Trump has described the trade imbalances between the two countries as a "very, very big issue" that he would address. But what counts in the overall economy is not the value of the exports but whether the trade surplus narrows or widens.

New construction starts measured by floor area, a telling indicator of developer confidence, rose 14.0 percent in June, the highest since October 2016, according to Reuters calculations.


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