GDP figures offer credible economic reassurance

Source:Global Times Published: 2015-7-15 20:23:01

China's GDP rose 7 percent in Q2, 2015, the National Bureau of Statistics said in a statement Wednesday. This beats most predictions from both domestic and foreign economists of a 6.8 or 6.9 percent growth. It shows that the Chinese economy is improving in a stable manner, which is a good sign as uncertainties are still haunting the world economy.

Investment, consumption and exports are rebounding. Consumption inspiringly contributes to 60 percent of the growth, 5 percentage points higher than the previous year. Besides, the tertiary industry is playing a larger role in the economic growth. Private business is booming; industries labeled "Internet Plus" are surging; starters of small and micro businesses are turning dynamic. All this evidence demonstrates that the efforts to rearrange the economic structure and steady economic growth have taken effect.

It is still too soon to assert that the 7 percent growth rate is the bottom of the economic trough. But China's latest economic performance has fueled people's expectation that the Chinese economy might be better in the second half of the year than the first half. The yearly growth rate might be above 7 percent, way higher than the predications most international organizations gave earlier this year.

The bottom of the trough could be anywhere. The Chinese economy could be much worse if the government and companies just left piles of problems unresolved. However, they are engaged in a joint undertaking to make sure targeted economic policies and measures have taken root as expected. Both the Chinese people and the government have maintained the momentum of taking preemptive actions to avoid more problems.

If the growth rate can remain stable at around 7 percent, the "new normal" of the Chinese economy can be consolidated and future development will be sustainable.

More importantly, the Chinese are starting to calm down and embrace the "new normal." A shift of gear in economic development has not inflicted much cost, as per capita income keeps rising, more jobs are created, and environmental maladies are being reduced.

Over the years, Western pundits never cease hyping theories such as the "China threat" or "China collapse," especially in economic terms. However, none of them have offered reliable and empirical observations about when the "collapse" will take place. Some Western countries have been in zero or negative growth for years, but they do not face the danger of "collapse" from the Western perspective. "Collapse" derives from a breakdown in people's confidence.

The Chinese economy might go through more new difficulties in the future. But the country's ability to cope with pressures has been greatly enhanced. China knows that a proper slowdown in economic growth is necessary for economic restructuring.

Still, the 7 percent quarterly growth rate is the lowest among recent years, but positive signs are being revealed. China's efforts to holistically deepen reforms are making more progress.

Posted in: Editorial

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