China's GDP grows 6.7pc

China's statistics bureau said the economy still faces downward pressure, despite growth. Photo / Getty Images
China's statistics bureau said the economy still faces downward pressure, despite growth. Photo / Getty Images

China's economy grew 6.7 per cent in the second quarter from a year earlier, steady from the first quarter and slightly better than expected as the Government stepped up efforts to stabilise growth in the world's second-largest economy.

Analysts polled by Reuters had predicted gross domestic product (GDP) would ease to 6.6 per cent in the second quarter, which would have been the weakest since the global financial crisis, and had predicted a further loss of steam later this year.

Second-quarter GDP rose 1.8 per cent quarter-on-quarter, also slightly better than expected, the statistics bureau said yesterday.

While fears of a hard landing have eased, investors fear a further slowdown in China and any major fallout from Brexit would leave the world even more vulnerable to the risk of a global recession.

China's statistics bureau said the economy still faces downward pressure, but that economic growth in the first half lays a good foundation for achieving 2016 targets.

The Government boosted spending by 19.9 per cent in June, the finance ministry said yesterday, up from a 17.6 per cent increase in May.

June activity data released along with GDP was mixed, but weakening investment figures pointed to the risk of a loss of economic momentum later in the year.

Industrial output growth rose to 6.2 per cent in June from a year earlier, said the bureau and retail sales growth picked up to 10.6 per cent.

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