Chinese economy stabilizes with more positive July factors

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Chinese economy stabilizes with more positive July factors

By Zhu Ningzhu (Xinhuanet.com) 10:53, August 14, 2013

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A string of economic data in July came in better than expected, suggesting that the Chinese economy is stabilizing and recovering with more positive factors.

Surprisingly strong trade data was reported in the past month, according to the National Bureau of Statistics (NBS) .

The total volume of foreign trade in July reached more than 354 billion U.S. dollars, an increase of 7.8 percent on the same period last year, showing the country’s foreign trade growing again, reversing June's decline.

China's consumer price index (CPI), a main gauge of inflation, grew 2.7 percent year on year in July, lower than market expectations of an increase of 2.8 percent, and remained well below the government's full-year target of 3.5 percent.

Industrial value-added output expanded 9.7 percent year on year in July, marking the highest growth in past five months and highlighting improved market expectations.

China's PPI continued a downward trend in July, but at a slower pace for the first time since April.

Business insiders believe that China’s economy is showing signs of recovery, though time and more data on a longer term basis are still needed to tell if the the Chinese economy is solidly on the up again.

"The July figures are satisfactory," said Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a government think tank.

"Exports returned to the normal growth track and the sharp rebound of imports signals the easing of downward pressure on the Chinese economy," Huo added.

In a bid to inject new impetus into restructuring and stabilizing China’s economy, the government had unveiled a series of new policies including encouraging public consumption, maintaining rational investment growth, and strengthening policy support for small and medium-sized enterprises.

“China's recent measures to stabilize growth, restructure the economy and promote reforms have started to take effect," said Yu Qiumei, a senior statistician with the NBS.

The world's second-largest economy has been stuck in a protracted weak recovery, easing to 7.5 percent growth in the second quarter, the lowest since the third quarter of 2012.

The Chinese government has expressed confidence of meeting its 7.5 percent growth target this year and is supported by many factors in light of the encouraging July data.