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China's quarterly GDP increases 7.5pc, but still relies on stimulus
CHINA's GDP rose 7.5 per cent in the second quarter year on year, the first growth acceleration in three quarters, Bloomberg reported, citing official data.
That was higher than 7.4 per cent in the previous quarter and came on the back of higher state spending and credit easing.
Industrial production rose 9.2 per cent in June from a year earlier, topping the nine per cent median estimate of analysts and 8.8 per cent in May. Fixed asset investment excluding rural households increased 17.3 per cent.
"The data are quite positive," said Zhu Haibin, chief China economist at JPMorgan in Hong Kong.
"The government will continue to support the key sectors it is supporting now, but will not expand to sectors it is not encouraging," he said.
Premier Li Keqiang's government has brought forward railway spending, reduced reserve requirements for some lenders and cut taxes to protect an annual growth goal of 7.5 per cent.
Even with the support, analysts have forecast China is headed for the slowest full-year expansion since 1990, said Bloomberg.
That was higher than 7.4 per cent in the previous quarter and came on the back of higher state spending and credit easing.
Industrial production rose 9.2 per cent in June from a year earlier, topping the nine per cent median estimate of analysts and 8.8 per cent in May. Fixed asset investment excluding rural households increased 17.3 per cent.
"The data are quite positive," said Zhu Haibin, chief China economist at JPMorgan in Hong Kong.
"The government will continue to support the key sectors it is supporting now, but will not expand to sectors it is not encouraging," he said.
Premier Li Keqiang's government has brought forward railway spending, reduced reserve requirements for some lenders and cut taxes to protect an annual growth goal of 7.5 per cent.
Even with the support, analysts have forecast China is headed for the slowest full-year expansion since 1990, said Bloomberg.
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