China’s economy grew by 7.9% in the second quarter of this year, having implemented a Rmb4 trillion (£360 billion) stimulus package and increased lending to record highs.
According to a statement by the National Bureau of Statistics (NBS), its GDP grew by 7.1% year-on-year to Rmb13.99 trillion in the first half of the year.
However, despite the positive output, the statement’s overtone is critical. “There are many difficulties and challenges existing in current national economic performance,” Xiaochao Li, the spokesman of the National Bureau of Statistics of China, is quoted as saying.
“The base for recovery is still infirm, the momentum for picking up is unstable, the recovery pattern is unbalanced, and thus there are still uncertain and volatile factors in the recovering progress.”
Following the global slump, industrial production picked up quickly and the decreasing rate of profits slowed down, the NBS says. Investment in fixed assets enjoyed fast growth and companies investment structure has improved.
While foreign trade continued to drop sharply, Chinese businesses have reported an increase in sales on domestic markets. The NBS says the growth rate of consumer prices continued to decline while the year-on-year change of producers’ prices witnessed large margin decline.
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