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 stock market boom.
The data released by the National Bureau of Statistic (NBS) shows that June 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 analyst’s expectation by 0.2 percent.
The report will further bolsters Premier Li Keqiang’s expansion target of about 7 percent for 2015, China remain one of the world’s growth drivers since the Chinese economy account 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”. Australian dollar on the other hand rose in respond 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 seem 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 central bank eased borrowing rules to help buyers. China continues to surprise investors by ensuring proper economy policy is adopted to stir growth and help investors.