Local growth bottoms out in second quarter

First-half growth slowed in many provinces this year, although it picked up in the second quarter compared with the first as top-down stimulus measures kicked in and local governments took pro-growth steps of their own.

Of the 11 regions that have so far released first-half GDP statistics, just one-the northwestern province of Qinghai-achieved double-digit expansion.

The overall low level of growth was very unusual in the past few years. Western regions, whose growth rates easily surpassed 10 percent previously, have descended into single-digit territory, with GDP growth slipping by as much as 3.7 percentage points compared with 2013.

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However, almost all regions delivered a better performance in the second quarter than the first, with just one exception: Xinjiang's growth in the first half slowed by 0.2 percentage point over that of the first quarter alone.

Southwestern Yunnan province experienced the largest improvement, with growth accelerating from 7.7 percent in the first quarter to 8.4 percent for the first six months. Economic powerhouse Guangdong saw its growth rise from 7.2 percent to 7.5 percent.

Other regions' first-half growth rates edged up 0.1 to 0.4 percentage point.

Regional governments did not provide separate growth data for the second quarter.

The marginal improvements are being mainly attributed to a raft of stimulus measures adopted since April. These measures, including more spending on railways, public housing and infrastructure, helped arrest the significant slowdown in the first quarter, analysts said.

China's economic growth picked up slightly to 7.5 percent in the second quarter.

Recent signs indicated that Premier Li Keqiang is increasingly serious about the 7.5 percent annual growth target. He said last week the government "must ensure" the goal is met.

The unexpectedly hefty increase in bank loans in June was taken as a signal of the government's seriousness. Chinese banks lent 1.08 trillion yuan ($174 billion) in June, nearly 20 percent above market expectations. Fiscal spending in June surged 26.1 percent, after a 24.6 percent expansion in May.

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