After Xi Jinping signaled over the weekend that there was no end in sight to authorities’ deleveraging campaign, China’s second quarter GDP growth numbers did not disappoint. The economy grew at a pace of 6.9%, beating analysts’ expectations of 6.8%, according to data from the National Bureau of Statistics.
“Overall, China’s Q2 economic performance provides a favorable backdrop for the authorities to push forward with their structural reforms, including those highlighted at the National Financial Work Conference held over the weekend,” ANZ Bank economists were quoted by Reuters as saying in a note.
The strong showing comes after the equally strong 6.9% growth seen in the first quarter, and puts China on track to easily meet the government’s 6.5% target for the year. Citi has revised its growth projection for the year to 6.8% from 6.6%.