China Growth Hit 6.7% in Q2 Slowest in Seven Years

China’s economy grew at its slowest quarterly pace in seven years, touching down at levels last seen during the dark days of the global financial crisis in early 2009.

The world’s second-largest economy grew by 6.7% in the three months to the end of June, compared with the same period a year earlier, according to China’s National Bureau of Statistics. That is a hair better than the 6.6% forecast in a CNNMoney survey of economists, and matches the rate of growth in the first quarter.

“I think it is, in fact, slightly positive,” said Edmund Goh of Aberdeen Asset Management. “I think a lot of people are really expecting slower growth, but the fact that it is slightly above what the market was pricing in, is a positive sign.”
Stock markets in China appeared unruffled and were little changed in Friday trading.

Investors were left reeling by last year’s turmoil on Chinese markets, and have been preparing for the worst. But it appears things aren’t quite as bad as expected.

Growth in the most recent quarter was buoyed by more state-backed investment, according to Capital Economics. Retail sales also picked up, evidence perhaps of the government’s attempts to transition the economy away from manufacturing and exports to services and consumption.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza