China’s economy expanded by 7.4 per cent in the second quarter, year-over-year and after policy makers relied on economic stimulus measures to shore up growth
The 7.4 per cent rate was the same pace as the growth as China achieved in the first three months of 2014, and puts the economy on track to hit the government’s 7.5 per cent GDP target for the full year.
China’s leadership had said it was willing to tolerate slower rates of growth to achieve structural reform, but seems to have blinked when the economy grew by the slowest rate in 18 months in the first quarter.
Chinese bank loans and other forms of credit grew at their fastest pace for three months in June, according to data released on Tuesday, in a sign that authorities have loosened the credit taps in a bid to stabilise a slowing economy, while potentially backsliding on efforts to curb excessive debt.
