First-half performance sets tone for solid growth


Good signs: A worker at a copper manufacturing facility in Jinhua, China. Optimism remains about the consumption recovery and economic growth in the second half, given the steady rebound in demand domestically. — Bloomberg

BEIJING: China’s economy grew by 5% in the first half of this year despite challenges such as weak demand and a complex external environment, providing a solid base for achieving the whole-year growth target, analysts say.

However, they cautioned that the weaker-than-expected second quarter performance indicates that the foundation for economic stabilisation is not yet fully there, highlighting the need to strengthen both counter-cyclical and cross-cyclical adjustments of macro policies to prop up the world’s second-largest economy.

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