China’s Economy Expands 6.7% in First Quarter
China’s economy is gradually stabilizing after monetary easing program and currency devaluation to stimulate growth failed as oil glut weighs on exports and global economics.
The economy reportedly rose 6.7 percent in the first quarter of the year, meeting the exact figure forecast by economists surveyed by Bloomberg.
Although this is the slowest quarterly growth in seven years, the expansion is in line with projected 6.5 percent to 7 percent growth for the year.
The economy recorded improvements in property market, investment in industrial assets and infrastructure with a surprise 10.7 percent jump in the first quarter.
Consumer spending also surged by 10.5 percent in March, positioning the world’s second largest economy for its well documented transformation from an export-led economy to a consumption dependent economy.
“The economy has stabilized thanks to a flood of liquidity and improved sentiment in the property market,” said Tao Dong, head of Asia economics excluding Japan at Credit Suisse Group AG in Hong Kong. “It is not clear whether the momentum is sustainable. So far, the government seems to be the solo singer. It is critical to re-engage private investment.”