China’s Premier Li Keqiang said on June 22 that the country’s economic growth is accelerating. He mentioned this at a meeting of the State Council, China’s cabinet.
The first half of the year had been “difficult” for the Chinese economy, but it had “shown signs of recovery” in recent months.
Industrial production, retail sales, and investment had all grown in May. To support economic growth, the government will implement various policies including fiscal stimulus and financial support for businesses.
Li also emphasized the importance of “supply-side structural reform” to enhance productivity and innovation.
Whether China will meet its 5% growth target remains uncertain. However, Li’s comments indicate the government’s confidence in the economy’s progress.
Here are some of the factors that could affect China’s economic growth in the second half of the year:
- The pace of the global economic recovery.
- The impact of the US-China trade war.
- The performance of China’s domestic economy, including consumption, investment, and exports.
