China’s economy may have expanded 7.5 percent from a year earlier in the three months to June, inching up from the 7.4 percent growth pace recorded in the first quarter, on the back of the government’s mini-stimulus, China News Service reported Wednesday, citing analysts.
The National Bureau of Statistics will release the second-quarter and first-half economic data on Wednesday.
Zhu Zhenxin, a researcher with Minsheng Securities, was quoted as saying that both external and domestic demand has improved thanks to the government’s targeted stimulus policies. GDP growth for the second quarter could come in at about 7.5 percent, he said.
Analysts from UBS, Bank of Communications and Bank of China also projected similar figure.
To boost growth, the government stepped up investments in railways, agricultural projects and shanty-town upgrades, and also eased monetary policies to support small firms.
The effects have been felt already. The country’s manufacturing PMI has risen for four consecutive months since March; foreign trade was up 1.8 percent in the second quarter, ending negative growth; while power consumption also rose 5.9 percent in June, increasing for the second straight month, the report said.
However, Bank of China said in a research report that downward pressure still exists due to a weak property market, swelling local government debts and excess capacity in some industries.
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