China’s growth stabilised in the first quarter thanks to rising investments and a recovery in exports, experts said, though they warned the reprieve may be temporary.
According to an AFP survey of 16 economic analysts, the gross domestic product expanded 6.8% in the first three months of this year - the same level of growth as in the last quarter of 2016.
The official GDP growth figure will be released tomorrow.
“Our expectation is stable to stronger growth in the first quarter, based on faster industrial production and investment related mostly to the housing sector bubble and increased fiscal spending on infrastructure,” Brian Jackson of IHS Markit told AFP.
Cheap credit has bolstered the construction sector since last year, attracting savers and speculators who have fuelled housing prices in large cities and accelerated manufacturing activity.
While the country attempts to rebalance its economy around services and domestic consumption, “the question we need to ask is whether China has returned to the same old property-driven model,” ANZ Bank’s chief economist for greater China, Raymond Yeung, told AFP.