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China's economy grows 9.5% in the first half
(Agencies/chinadaily.com.cn)
Updated: 2005-07-20 13:12

China's economy expanded faster than expected in the first half of the year, growing 9.5 percent, with investment still strong and continued bottlenecks in the resources sector.


A ship transports coal in Shanghai in this June 16, 2005 photo. China's economy grew 9.5% in the first half this year, faster than expected. [newsphoto]
Growth for the second quarter alone came in at 9.5 percent, compared to first quarter to March growth of 9.4 percent. The GDP in the first half of this year reached 6,742.2 billion yuan (US$812.3 billion.

The outcome was above analysts' forecasts who had predicted a moderate slowing of the economy in the second quarter, confident that macroeconomic controls would put the brakes on the torrid growth of the last three years.

"It was 0.2 percentage points lower than the growth rate for the same period of last year," said Zheng Jingping, spokesman of the National Bureau of Statistics, at a press conference in Beijing on Wednesday.

"The statistics show that the national economy continued to develop in the expected direction of macro-regulation and control," he said. "The overall situation is good."

He highlighted the most prominent problem as increasing farmers' incomes. He also said the total size of investment was "too large and the structure is irrational.

"The economic efficiency of some industries is not as good as that in the previous year and the supply of coal, electricity, oil and transportation capacity is tight," he added.


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