China’s economy grew by more than 5 percent in the second quarter, according to official data, staying on track to meet Beijing’s annual growth target despite United States President Donald Trump’s trade war.
China’s gross domestic product (GDP) expanded by 1.1 percent from April to June, data from China’s National Bureau of Statistics showed on Tuesday.
On an annualised basis, China’s economy grew 5.3 percent in the first half of the year, keeping it in line with Beijing’s full-year target of about 5 percent growth.
“Generally speaking, with the more proactive and effective macro policies taking effects in the first half year, the national economy maintained steady growth with good momentum, showcasing strong resilience and vitality,” the statistics agency said in a statement.
Lynn Song, chief economist for Greater China at ING, said China’s economic performance was “certainly encouraging” compared with the “very downbeat expectations at the start of the year”.
“Trade data benefited from frontloading in the first quarter, but generally held up better than expected in the first half as a whole,” Song said in a note.
“As a result, industrial production has outperformed.”
Still, Song cautioned that the second half of the year could “prove to be more challenging”.
“The tariff uncertainty will remain an overhang, with the next key deadlines coming up soon in August. Though we don’t expect a return to the April peak tariffs, we wouldn’t rule out further escalations,” he said.
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