China’s GDP Surges 7 Percent In 2Q

China’s GDP surged 7 percent in the second quarter of the year, surpassing 6.8 percent predicted by analysts. The economy continue to grow as the government orchestrated a debt swap for provinces and the central bank of China speed up monetary easing to help spur the stock market boom.

The data released by the National Bureau of Statistics (NBS) shows that June’s industrial output rose 6.8 percent from 6.1 percent recorded in May, spending on non-rural capital investments remain the same at 11.4 percent, beating analysts’ expectations by 0.2 percent.

The report will further bolster Premier Li Keqiang’s expansion target of about 7 percent for 2015, China remains one of the world’s growth drivers since the Chinese economy accounts for 38% of global growth.

Retail sales increased by 10.6 percent in June showing better than expected consumer confidence. According to Ding Shuang, chief economist at Standard Chartered Plc, Hong Kong “Downside risks are getting smaller, a modest recovery should be expected in the remaining half of the year”. The Australian dollar on the other hand rose in response to the positive data while Chinese stocks pared losses early this morning.

Crude-steel production shrank by 1.3 percent to 410 million metric tons in the first half of the year compared with the same period last year, 2014. Construction seems slumping as the government is shifting the economy from investment-led growth towards consumption.

Chinese exports rose for the first time in four months in June, showing a positive economic outlook, property sales also picked up after the central bank eased borrowing rules to help buyers. China continues to surprise investors by ensuring proper economic policy is adopted to stir growth and help investors.