Impressive rebound for China’s economy

Latest government report from Beijing, reveals China,s economy grew by 7.9% in this year's second quarter.

Latest government report from Beijing, reveals China’s economy grew by 7.9% in this year’s second quarter.

With help from $US580 billion in government pump priming, the world’s third biggest economy picked up pace again after the global economic crisis dragged growth down to 6.1% in the first quarter.

China’s gross domestic product grew by 7.1% in the first half of 2009 compared with the same period a year earlier, according to the Beijing bureau.

This puts China back on track to achieve its goal of 8% growth for the year, despite the financial crisis hitting its crucial export sector particularly hard.

Analysts say the rebound in China offers a boost of confidence for the global economy as it struggles out of the worst economic crisis since the Great Depression of the 1930s.

However, analysts caution that immediate and direct benefits would be limited to countries that import heavily into China, chiefly resource-rich exporters and neighbouring nations in Asia.

Before the global economic crisis struck, China experienced double-digit annual growth from 2003 to 2007, and again for the first two quarters of last year.

To fight the downturn, the government began implementing a four-trillion-yuan (US$580 billion) stimulus package from November last year.

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