China’s 7 percent GDP growth hints at economic pick-up

Global Business

China GDPPhoto: CCTV News

China’s economy grew by 7 percent during the first half of 2015. The better than expected figure is a signal the economy is steadying and that government policies are working, according to the country’s statistics bureau.

In a statement released Wednesday, the bureau said the data indicated growth was “ready to pick up”, crediting the recent haul of fiscal measures.

The Chinese government has set the year’s growth goal at 7 percent earlier this year. However, China still faces challenges, such as an uncertain global economy and transforming the domestic economic structure in order to consolidate steady growth.

Meanwhile, fixed-asset investment increased 11.4 percent in the first six months from a year earlier, retail sales expanded 10.4 percent, and industrial output rose 6.3 percent.

To support the economy, China’s central bank has taken a slew of measures, such as pumping up liquidity by cutting interest rates and required reserves. Data released Tuesday proved optimistic, with new loans extended by commercial banks increasing by 537.1 billion yuan ($86.5 billion) to 6.56 trillion yuan (around $1.05 trillion) in the first half year.