China’s second quarter growth beats expectations at 6.9%

The latest update from the National Bureau of Statistics likewise pointed to higher retail sales growth of 10.4%, up from 10% in the first quarter, and a healthier stream of private sector investment, up 7.2% to 17trn yuan.

Overall industrial production rose 7.6 percent in June from a year earlier, the government announced on Monday morning, an unexpectedly faster tempo than in May’s 6.5 percent.

Chinese Premier Li Keqiang said last month that the country could reach this year’s economic growth targets.

Its forecast for China GDP growth this year is 6.5 percent, with upside risk due to strong growth and exports.

Retail sales also impressed, lifting by 11% from a year earlier.

The quarterly pace came up from 6.7 percent for the first three quarters of 2016 and 6.8 percent for the final quarter of a year ago. The string of growth will set the groundwork for the government to tackle economic challenges ahead of the re-selection of China’s Central Committee later this year.

The bank has raised its 2017 annual GDP projection to 6.8 percent on-year from 6.6 percent previously.

Some analysts have said that the property market could turn out to be a bubble.

NBS’ spokesman Xing Zhihong also suggested further growth in rebalancing the economy this year saying upbeat changes in the economy will rise, with the trend of stable and improving growth strengthening and expanding even more.

As reported by the Financial Times, China’s GDP growth last year was 6.7 percent, while the government is targeting a full-year growth rate of around 6.5 percent for this year.

The surplus with the United States was $25.4 billion in June, up from $22.0 billion in May, official data showed last week, and its widest since October 2015, according to a Reuters calculation. The stronger-than-expected growth came as a result of industrial output and consumption picking up and higher investment.

Despite all the efforts property investment grew by 8.5 percent in the first half of this year, up from the same period in 2016.