China’s GDP grows by 8pc on stimulus efforts
CHINA looks set to hit its full-year growth target of eight per cent after a surprisingly strong second quarter notable for a surge in investment driven by powerful fiscal and monetary stimulus.
Annual gross domestic product growth accelerated in the second quarter to 7.9 per cent from 6.1 per cent in the first quarter, making China the best-performing major economy and reinforcing hopes that the world economy is pulling out of its deepest recession in 80 years.
Economists had forecast 7.5 per cent growth, and several promptly responded to yesterday’s figures by raising their projections for this year and next.
“We see clear upside risks to our current GDP growth forecast of 8.3 per cent for 2009,” said Yu Song and Helen Qiao at Goldman Sachs.
Tokyo shares hit a one-week high and shares elsewhere in Asia surged on the good news from China.