China’s economic growth holds steady despite slowdown fears

The economy expanded by 6.9% in the second quarter, unchanged from the first quarter, according to figures released on Monday by the National Bureau of Statistics. -China bilateral trade was up over 14% from January to May over a year ago, to $220 billion.The statistics bureau urged that China should be “united even closer around the Party Central Committee with Comrade Xi Jinping at its core” to overcome any uncertain economic factors at home and overseas.Total social financing plus bonds, the broadest measure of credit, expanded 14.7 percent in June compared with the same month a year earlier.But a sharp slowdown in the second half is unlikely as policymakers prepare for an important Communist Party congress later this year that will likely cement Xi’s place as the most powerful leader in a generation.Analysts expect tighter restrictions on property purchases and bank lending will continue to weigh on the economy in the months ahead.The Chinese economy grew faster than expected in the second quarter, boosted by stronger industrial output and personal consumption as well as steady investments.”China’s strong first half to the year won’t last”, Julian Evans-Pritchard, China economist at Capital Economics, said in a note.Economist Craig James said that based on the data, easing and tightening are really not necessary since inflationary pressures are very much contained therefore PBOC should just remain to be observant.Growth in both exports and imports was also higher than expected.”The national economy performed within an appropriate range with more visible good momentum and achieved steady growth, rise in employment, stable prices, income growth and optimizing structures”, said the NBS.Separately, the NBS reported a 7.6% spike in annual industrial production in June, which was well above May’s 6.5% expansion.China’s steel output rose 5.7 percent in June to a record 73.23 million tonnes, data showed on Monday, as mills in the world’s top producer ramp up production due to fat profits from rallying prices.