RHB | China | Economy Grew 7.5% yoy in 2q

Economic Research	16 July 2014
China
Economic Highlights
China: Economy Grew 7.5% yoy in 2q China’s 2q real GDP came in line with our expectation, growing by 7.5% yoy (consensus: 7.4%) after moderating to 7.4% in the first quarter. On a seasonally adjusted qoq basis, the economy expanded by 2.0% in 2q compared to an upward revised 1.5% in 1q, implying that growth momentum had picked up albeit still at a moderate pace. In the first six months of the year, the economy expanded by 7.4% yoy, which is slightly below the official target of 7.5% for the whole year. On the supply side, tertiary industry, which accounted for 46.6% of China’s economic output in 1H, led the recovery with an 8.0% yoy expansion ytd, up from 7.8% in 1q. The secondary and primary industries grew by 7.4% and 3.9% yoy in 1H, compared to 7.3% and 3.5% in 1q respectively. Growth of industrial production quickened slightly to 8.8% yoy in 1H from 8.7% in 1q, as production in the mining sector accelerated, offsetting a slight slowdown in the electricity sector. The rate of expansion in manufacturing output remained stable in the second quarter.   Economist:  Liang Siew Huay  | +65 6232 3851