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Strong Economic Growth of China reached 6.9pc in 2017


Январь, 19 2018
watermark Economic news

As shown in the official data, the Chinese economy expanded by 6.9 percent last year which is the first time in seven years that the momentum increased. The released figures outperformed the official annual growth target of Beijing which is about 6.5 percent. China is regarded to be a major driver of the world economy and as the data came in better than expected, the investors had a positive outlook for the global economy. However, observers from China deemed that the result of GDP figures was lower than of the official numbers.


For the month of January, the governments of Tianjin and Inner Mongolia confirmed that they overestimated their projections for 2016 economy. Considering that the issued numbers are true, the growth rate of the Chinese economy in 2017 was the highest in two years. This further indicates the first time that China surged faster versus last year since 2010.


Nevertheless, the capital city of China increased its efforts in cutting down risky debts and improving air quality, hence, analysts predicted that this would put pressure on economic outlook this year. The data published yesterday also presented the annual growth rate of 6.8 percent in the last quarter of 2017, which is somewhat higher to the expected results by experts.

The country’s debt had a significant rise in the previous years with negative statistics on non-performing bank loans, local government credit financing, household and corporate debt. According to the International Monetary Fund, the country’s debt grew with an equivalent of 234% of the overall output. It is suggested that Beijing should focus less on growth and further provide support for banks’ finances


The government pledge to continually examine the local government debt among other considerations and stated to provide help of the state-owned firms to "leverage and cut debt ... and to repay their bonds on time this year".



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