China's economy grows 6.9% in second quarter of 2017, beats estimates

Gladys Abbott
July 17, 2017

Accounting sleight of hand may play some role.

The data showed that fixed assessment investment which includes spending on property construction and infrastructure, rose 8.6 percent in the first half of this year, down from 9.2 percent in the first quarter.

The result leaves China well placed to meet its 6.5% growth target for the year, though concerns remain over how sharply the economy will slow in the second half.

BEIJING: The Chinese economy grew faster than expected in the second quarter, boosted by stronger industrial output and personal consumption as well as steady investments.

The bureau also said that retail sales jumped an annual 11.0 percent in June, beating forecasts for 10.6 percent and up from 10.7 percent in May.

Over the half, China produced 419.75 million tonnes of crude steel, up 4.6% on the same period a year earlier.

The improving economy is no doubt welcome news ahead of an autumn congress of the ruling Communist Party of China, at which President Xi Jinping is widely expected to tighten his grip on power, with leadership keen to ensure a smooth run-up to the meetings.

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So far, this monetary tightening has not affected actual progress with private investment picking up led by New Economy parts of China which is showing great development in the tech side translating into strong growth.

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That was the same as during the first quarter of 2017 but slightly better than the 6.8% pace which economists had been anticipating.

Some of the biggest cities, like Beijing, have recently tried to curb real-estate speculation with administrative limits, but these rules have had limited effect, as credit has stayed plentiful.

"Specifically, the year-on-year growth was 6.9 percent for the first quarter, and 6.9 percent for the second quarter", the bureau said in a statement.

Retail sales rose 10.4% in the first half of the year, up 0.1 percentage points from the first quarter's rate.

Analysts had expected the world's second-largest economy to expand 6.8% in the April to June period.

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