- National Bureau of Statistics
The world's second biggest economy continued to grow at the slowest pace in six years in the second quarter, yet in line with Beijing's goal. China's economy expanded an annualized 7% in the three months through June, as key production indicators rebounded indicating that the government's stimulus measures deployed since late last year helped cushion a long-term structural decline. However, most economists expect further stimulus after the quarter ended with a stock market rout. The government is still trying to stabilize the stock market, which lost 30% after a sharp freefall caused by panicked selling. The statistics bureau said a stable stock market was crucial for the Chinese economy.
The data beat economists' expectations, who had predicted a 6.9% growth in the reported period. On a quarterly basis, the economy grew 1.7%, up from 1.4% in the March quarter, according to the National Bureau of Statistics. Beijing has predicted economic growth of around 7% for 2015, which would be the weakest rate in 25 years, emphasizing that lower levels of growth is to become a new normal, which will help to ensure a more sustainable future for the economy. The government is also trying to shift the economy away from export and investment-led growth, to a consumer-driven economy.
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