Following weeks of stock market turmoil, China has confounded expectations that its economic growth would slow further in the second quarter, with gross domestic product rising by 7%. Analysts had widely predicted that economic growth would dip from 7% in the first quarter to around 6.8% in the second. However, GDP held steady, officials from China’s National Bureau of Statistics claimed on Wednesday morning. The figure still represents the lowest level of growth since the 2009 global financial crisis but is in line with Beijing’s official target for 2015 of “around 7%”...
However, there were immediate doubts over the growth figure’s reliability with the announcement sparking renewed debate over the trustworthiness of Beijing’s statistics.
The fact that the figure was exactly in line with the Communist party’s 2015 full-year growth target “raises suspicions,” said Yang. “There is the issue of credibility, certainly.” China’s premier, Li Keqiang, tried to put a brave face on the recent stock market collapse during a meeting on Friday with economists and business leaders in Beijing.
“China’s economy still boasts remarkable tenacity, potential and flexibility,” Li said, according to state media. “There is little doubt that China’s potential for medium-high growth remains underpinned by strong, long-term fundamentals. The global economic recovery is full of twists and turns. China should push forward its own development with stronger confidence and greater efforts.”
However, Beijing has faced criticism for its handling of the crash. Chinese president Xi Jinping has vowed to reduce Beijing’s role in the economy but as stocks plunged earlier this month the Communist party took drastic measures, including temporarily halting initial public offerings. ....No-one, even in China, believes this number. Party apparatchiks deliver a number to suit the forecast, to do otherwise would cause Xi to lose face and further erode trust in the crashing stock market. The real number is probably around 5%.
However, Beijing has faced criticism for its handling of the crash. Chinese president Xi Jinping has vowed to reduce Beijing’s role in the economy but as stocks plunged earlier this month the Communist party took drastic measures, including temporarily halting initial public offerings. ....No-one, even in China, believes this number. Party apparatchiks deliver a number to suit the forecast, to do otherwise would cause Xi to lose face and further erode trust in the crashing stock market. The real number is probably around 5%.
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