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  Economics 
17 of July, 14:21

China
The gross domestic product of China in the second quarter grew by 6.9%, according to the government, published on Monday, compared with the previous quarter and slightly higher than most forecasts. The latest figures have positioned the economy above the target growth in Beijing for 2017.

But China's rapid growth - growth from 6.7% that was recorded last year, will be difficult to sustain in the coming months, analysts said as the government focuses on strengthening fast-growing debt of the country.

"We have doubts about how sustainable is recovery," said economist at Capital Economics Julian Evans-Pritchard, adding that the economy "is highly dependent on government stimulus, rapid credit growth and relatively loose monetary policy".

The Chinese government announced last week that will change the way we calculate economic growth for the first time in 15 years, adding to the total figure health, tourism and the "new economy". Not clear, did these additions on the growth.

The latest growth figures are also likely to increase skepticism among analysts about the reliability of official statistics. "We have doubts about the accuracy of official figures which indicate a fatal stable growth," wrote Evans-Pritchard in a research report Monday.

Economists often use other measures, such as electricity production and freight transportation as an indicator of the true economic power of China. The ruling Communist party of China focused on how to preserve the stability of the economy ahead of the reshuffle of its senior management in the fall, when the President XI Jinping will begin his second term.

The Chinese government said in March that it aimed to increase "approximately 6.5% or higher, if possible" in 2017.

sections: Economics, World News

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CHINA Alexander
CHINA Takeshi (Takeshi Kitano)
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