Economic growth in China was surprisingly strong in the second quarter. GDP accelerated by 7.9 percent compared with the same period last year and was up from 6.1 percent growth in the first quarter.That makes China the best-performing major economy and increases hopes that the world economy is pulling out of recession. Growth now looks set to hit Beijing’s target of eight percent this year, but much of the expansion comes from a surge in investment due to government stimulus packages. And the National Bureau of Statistics which released the GDP figures warned the base for recovery is “still weak.” Spokesman Li Xiaochao said: “The recovery trend is still unstable; the recovery structure is still unbalanced. There are unstable and unknown factors in the recovery process.” Industry grew strongly and factory output growth quickened by 10.7 percent year-on-year. The detailed data for June seems to show an economy successfully making up for a slump in exports through domestic demand. Eight per cent annual GDP growth is the minimum Beijing believes is necessary to hold down unemployment and therefore avoid social unrest.
Chinese GDP growth picking up