China Investment

China

China: Investment reflecting government's supportive stance towards growth

July 13, 2012

In the first half of the year, urban fixed-asset investment excluding rural households (FAI) grew 20.4% over the same period last year. The figure was above the 20.2% expansion recorded in the first five months of the year and overshot the 20.0% increase expected by market analysts. Investment in the January-June period was mainly driven by an acceleration in the services sector, while the industry and the primary sectors deteriorated. Furthermore, the healthy outturn observed in June reflects the government's willingness to boost investment in order to shore up economic growth amid faltering global economic prospects. Compared to the previous month, investment in urban fixed assets increased a seasonally adjusted 1.71% in June, which followed on a 1.76% rise in May.


Author: Ricard Torné, Head of Economic Research

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