China’s Economy Accelerates With Help Of Stimulus
China has bought a rebound in economic growth with a flood of government spending and bank loans, averting a surge in politically dangerous unemployment and fueling hopes that it might help lead a world recovery.
The government’s announcement Thursday that second-quarter growth accelerated by 7.9 percent from a year earlier boosted global financial markets, though Beijing cautioned that a full-fledged recovery is not firmly established.
The economy grew by 6.1 percent in the first quarter, according to the National Bureau of Statistics, and analysts said full-year growth should easily reach the government’s 8 percent target.
The increase highlighted the economy’s dependence on Beijing’s $586 billion (4 trillion yuan) stimulus effort. It was launched after demand for Chinese exports collapsed, wiping out tens of millions of factory jobs and raising the specter of unrest.