China: Growth stable in Q2
July 15, 2015
GDP in Q2 grew 7.0% over the same period last year. The print matched the result tallied in the previous period and overshot the 6.8% increase that FocusEconomics Consensus Forecast panelists had expected.
Although the National Bureau of Statistics does not provide a breakdown of GDP by expenditure, additional data suggest that growth in domestic demand continued to slow in Q2, while the external sector benefited from a sharp drop in imports. Growth in nominal retail sales was broadly stable in Q2 (Q1: +10.5% year-on-year; Q2: +10.2% yoy). Urban fixed-asset investment, which includes capital and construction investment, expanded an accumulated 11.4% in nominal terms in the first half of the year, which was down from the 13.5% increase recorded in Q1. On the external side of the economy, nominal merchandise trade surplus rose strongly in Q2, as a result of a sizeable drop in imports.
On a production approach, economic activity in Q2 was propelled by stronger growth in services and agriculture, while the all-important industry moderated to an over six-year low in the same period.
On a quarterly basis, GDP expanded a seasonally-adjusted 1.7% in Q2 (Q1: +1.4% quarter-on-quarter).