NDRC: Chinese Economy to Maintain Good Momentum in H2

Time:2017-08-09   Source:Economic Information Daily Reported by L..

The Chinese economy has registered stable performance with good momentum for growth in the first half of 2017, driven by five factors including growth mode transformation, better economic structure and new growth engines, and the positive trend will continue during the second half of the year, said the National Development and Reform Commission (NDRC) on August 8.

According to the NDRC, in the first six months of 2017, consumption contributed 63.4% of China’s economic growth, private investment rose 7.2%, and strategic emerging industries, high-tech industries and equipment manufacturing all posted double-digit growth, significantly outpacing the secondary sector as a whole; GDP grew 6.9% year on year, staying within the range of 6.7%-6.9% for the eighth straight quarter.

Meanwhile, much headway has been made in structural adjustment. In the first six months, coal overcapacity was reduced by 110 million tons nationwide, accounting for 74% of the annual target. The area of commodity housing pending for sale decreased 9.6% year on year by the end of June, representing good progress in reducing real estate inventory. Market-based debt-to-equity swaps were carried out steadily, and the debt-to-asset ratio of industrial enterprises above the designated scale decreased 0.8 percentage point year on year. Various measures having been taken are expected to alleviate the burden on enterprises by more than RMB1 trillion in the year. In the first six months, industrial enterprises above the designated scale registered added-value growth of 6.9% and profit growth of 22%, the highest since 2012.

14 provincial regions saw their GDP exceed RMB1 trillion in the first half of 2017. The top 10 provinces with the highest economic growth rate including Yunnan, Ningxia, Henan and Sichuan posted GDP growth of over 8%. The economy of the northeast Heilongjiang Province and Liaoning Province rebounded. In particular, Liaoning’s economy grew 2.1% in the first six months of 2017 in contrast with -1% over the same period last year. Moreover, private investment increased significantly. Fujian, Tianjin and Chongqing had a growth rate more than twice the national average, and Guangdong, Zhejiang, Henan, Human and Shanghai achieved double-digit growth.

These figures reflect the stable performance of the Chinese economy, which has started to level off on the L-shaped growth path, said Yao Jingyuan, special researcher at the Counselors’ Office of the State Council.
According to Shi Shujie, assistant researcher at the Development Research Center of the State Council, China’s economy is getting ready to operate steadily at a medium-high rate of growth as shown in statistics as quality improvement has become a main drive of economic growth.

Zhang Deyong, researcher at the National Academy of Economic Strategy, CASS, pointed out that stability will be the keynote of China’s economic operation in the second half of 2017, highlighting the importance to maintain the continuity and stability of policies and guard against risks. In the future, the government will use more market forces to push forward the supply-side structural reform, reduce low-end and ineffective supply, increase efforts in strengthening weak areas, and promote better balance between supply and demand. Meanwhile, efforts will be made to advance the reforms to streamline administration, delegate powers, and improve regulation and services, improve the business environment to motivate market players and vitalize the market, accelerate the transition from old growth engines to new ones, and underpin the status and role of new growth engines in economic operation.

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