China's economy grew 7 percent on an annual basis in the second quarter, which parallels the growth rate of the first quarter and is slightly above the expectations of analysts, while more monetary support measures are expected to continue after the recent declines in stock exchanges. Economists surveyed by Reuters had expected the Chinese economy to grow 6.9 percent in the second quarter. The decrease in trade, investment and domestic demands observed in the world's second-largest economy has been accompanied by a cooling in the housing market, deflation pressures and the sharp fall of stock exchanges. Therefore, the latest data can partially help eliminate the assertion that support measures have not worked.
When quarterly growth is examined, the Chinese economy, which grew by 1.4 percent in the first quarter, managed to grow by 1.7 percent in the second quarter. The monthly activity report, which was announced together with economic growth data, indicated that factory activity saw its highest level within the last five months, which exceeded all expectations.
