China's local GDP data points to recovery, rebalancing

Wed Jul 30, 2014 2:30am EDT
 
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By Aileen Wang and Koh Gui Qing

BEIJING (Reuters) - China's regional economies enjoyed a revival in growth in the second quarter, data from provincial governments showed, chiming with earlier figures that suggest a burst of government stimulus measures is re-invigorating activity.

Of the 30 regions and provinces that released their local gross domestic product (GDP) data, 23 reported first-half economic growth accelerated from the first quarter.

About three-quarters posted growth that was higher than the national average of 7.4 percent in the first six months.

Growth also diverged sharply between eastern and western China. The coastal and northeastern regions fared the worst, while activity was most buoyant in the central and western areas, where double-digit growth rates were concentrated.

Analysts said this suggested China's bid to rebalance its economy is paying off.

From redefining job targets to shifting investment to inland areas and cutting obsolete capacity in energy-guzzling sectors in the north, China wants to overhaul the world's second-largest economy and encourage more sustainable and higher-quality growth.

"The growth gap is an expected result of Beijing's efforts to rebalance regional economies and let the fruits of growth be more evenly shared by the poorer inland regions," said Nie Wen, an analyst at Hwabao Trust in Shanghai.

For a table of regional GDP data, please click on   Continued...

 
Containers are transported at Nansha port in Guangzhou, Guangdong province, June 26, 2014. REUTERS/Alex Lee