Growth likely to recover by end of this year

The 6.3 percent GDP growth in the first half of the year is in line with expectations, and although the growth slowed to 6.2 percent in the second quarter, the slowdown is likely to bottom out in the fourth quarter.

Since the beginning of this year, the producer price index, which reflects the price changes in the production field, has remained low falling to zero by June due to declining international oil prices and weak internal and external demands. At the moment, the Chinese economy is on the edge of deflation and growth is likely to further slow down in the second half of the year.

But the month-on-month GDP growth has increased from 1.4 percent in the first quarter to 1.6 percent in the second, and macroeconomic data in June have improved beyond expectations. Which indicate the economy has sufficient resilience, and economic growth will recover by the end of the year or early next year.