China’s economy on the recovery path with 7.9 per cent GDP growth in Q2

China has become one of the few major economic powerhouse to come out of the global recession faster than most advanced economies by posting a 7.9 per cent gross domestic product (GDP) growth in the second quarter and not only on the way to achieve its 2009 annual growth target of 8 per cent, but may exceed it.

The world's third-largest economy grew by 6.1 per cent in the first quarter but accelerated in the second quarter to 7.9 per cent from a year earlier.

It is most likely to beat the annual growth estimate of the IMF, which had revised China's annual growth rate forecast from 6.5 per cent to 7.5 per cent early this month. (See: IMF raises growth projections for Asian economies)

The National Statistics Bureau (NBS), releasing the figures yesterday in Beijing, said that in the first half of the year investment grew by 6.2 percentage points, consumption by 3.8 percentage points, while net exports were down by 2.9 percentage points.

NBS spokesperson Li Xiaochao however, cautioned at a press conference in Beijing saying, "The base for recovery is still weak. Growth momentum is unstable. The recovery pattern is unbalanced and thus there are still uncertain and volatile factors in the recovery process."

Xiaochao added that all the government's policies have worked together to help overcome the financial crisis and the economy is recovering and the recovery is intensifying.

More people in China were shopping, with retail sales showing a strong comeback, booming stock market, growth in sales of apartments and automobiles, he said.