China’s economy grew by 6.9% in 2017
In this article (5)
China’s economy expanded at a 6.9 per cent pace in 2017, faster than expected and the first annual increase in seven years, the government reports.
The numbers beat economists’ forecasts for the world’s second largest economy and the Chinese government’s own official growth target of 6.5 per cent. The economy expanded at a 6.7 per cent pace in 2016, its slowest pace in 26 years.
Growth in the fourth quarter held steady at 6.8 per cent, the report said.
It said strong demand for exports and buoyant consumer spending helped drive the faster expansion. Those factors helped to offset curbs on bank lending that forecasters had predicted would be a drag on economic growth.
“The national economy has maintained the momentum of stable and sound development and exceeded expectations,” said the report released by the National Bureau of Statistics.
“China’s growth is very healthy,” said Iris Pang, Greater China Economist, ING, Hong Kong.
“The risks that we worried about in 2017, for example overcapacity cuts having a negative impact on GDP, did not happen because new sectors are actually coming out to help production to grow.”
Questions & Answers
Q.What was the official growth target set by the Chinese government for 2017?
What was the official growth target set by the Chinese government for 2017?
The Chinese government had set an official growth target of 6.5 per cent for 2017. The reported 6.9 per cent expansion exceeded this expectation.
Q.What factors contributed to the faster economic expansion in China during 2017?
What factors contributed to the faster economic expansion in China during 2017?
Strong demand for exports and buoyant consumer spending helped drive the faster economic expansion. These factors offset the predicted drag from curbs on bank lending.
Q.How did the 2017 growth rate compare to the previous year, 2016?
How did the 2017 growth rate compare to the previous year, 2016?
The 6.9 per cent growth rate in 2017 was faster than the 6.7 per cent pace recorded in 2016. The 2016 rate was the slowest in 26 years.
Q.What was the growth rate for China's economy in the fourth quarter of 2017?
What was the growth rate for China's economy in the fourth quarter of 2017?
Growth in the fourth quarter of 2017 held steady at 6.8 per cent, according to the report. This contributed to the overall annual expansion.
Reader pulse
Is China's growth sustainable?
21,873 votes so far