China’s economy rebounded in the second quarter, boosted by a surge in state spending and in bank lending, setting the scene for the biggest emerging economy to lead the world out of the worst global downturn since the Great Depression.
Economists had expected the economy to show some strong improvement as a huge 4.0 trillion yuan (£365 billion) government stimulus package announced last November began to take effect, but few had foreseen that annual gross domestic product (GDP) growth would accelerate in the second quarter to 7.9 per cent, up from 6.1 per cent in the first quarter.
That made China the world’s the best-performing big economy. It is now the third-biggest in the world.
There was growth from several sectors of the economy, including investment in fixed assets in urban areas in the first half and in June industrial production. Retail sales, a rough proxy for consumption, rose 15 per cent in June from a year earlier after May's 15.2 per cent increase.
China state fillip sends GDP soaring to 7.8% - Times Online
