BOFIT Weekly Review 2015/29
China’s Q2 economic growth remained at 7 %
China’s National Bureau of Statistics reports second-quarter GDP growth of 7.0 % p.a. First quarter GDP growth was also 7.0 %. On-quarter growth in the second quarter was 1.7 %.
Industrial output growth in the first half lagged GDP growth. In June, however, industrial output perked up to 7 % y-o-y. On-year growth in fixed asset investment slowed in the first half to 11 %. Growth in housing investment, in particular, slowed in the first half to 5 %, down from 14 % in 1H14. Real estate sales, however, rebounded in the first half after falling for nearly one-and-a-half years.
Private consumption increasingly is the main engine of growth in China. Real disposable incomes rose about 8 % in the first half, while retail sales growth in June remained above 10 %. Consumer price inflation accelerated slightly in June to 1.4 % y-o-y. Producer prices fell 4.8 % y-o-y.