Pos­i­tive signs emerge for econ­omy dur­ing Q2


op­por­tu­ni­ties, which will help China trans­form its growth pat­tern with­out a sharp slow­down,” saidWang.

Dur­ing the first three months, the year-on-year growth in the ser­vices sec­tor was about 8 per­cent, com­pared with 6.4 per­cent in the first quar­ter of 2014, ac­cord­ing to data from the Na­tional Bureau of Statis­tics.

The faster devel­op­ment of the ser­vice in­dus­try con­trib­uted 56.8 per­cent to the GDP growth in the first quar­ter, up from 51.7 per­cent in 2014.

Be­sides, new driv­ing forces are emerg­ing, in­clud­ing high­tech and In­ter­net-based busi­nesses, Wang said.

In April, the high-tech in­dus­try clocked growth in ex­cess of 10 per­cent from a year ear­lier, com­pared with the over­all industrial out­put growth rate of 5.9 per­cent, the NBS data showed.

Dur­ing the first quar­ter, op­er­at­ing rev­enue of the coun­try’s In­ter­net-re­lated ser­vices busi­ness rose by 26.9 per­cent year-on-year, much higher than the 2 per­cent av­er­age industrial in­come growth.

Xia Bin, a con­sul­tant to the State Coun­cil, said that China is likely to achieve its full-year em­ploy­ment growth tar­get as the gov­ern­ment is en­cour­ag­ing more star­tups and tech­no­log­i­cal in­no­va­tion.

Ac­cord­ing to the of­fi­cial data, job op­por­tu­ni­ties in­creased by 7.5 per­cent in the first quar­ter.

Field­ing Chen, an econ­o­mist with Bloomberg LP, said: “There are signs that the eco­nomic re­bal­anc­ing is bear­ing fruit in some parts of the coun­try.”

Chencit­edZhe­jiang­province as an ex­am­ple. Zhe­jiang, which is the home to In­ter­net gi­ant Alibaba Group Hold­ing Ltd and China’s e-busi­ness hub, “stands out as one of the coun­try’s few­bright spots”, he said.

It was the only prov­ince where growth ac­cel­er­ated at a much faster pace in the first quar­ter. Zhe­jiang’s GDP ex­panded by 8.2 per­cent yearon-year in the first quar­ter, from 7.6 per­cent in 2014.

“This was mostly due to the ser­vices sec­tor, which con­trib­uted 5.3 per­cent­age points to the first-quar­ter growth. The soft­ware and in­for­ma­tion sec­tor posted 27.6 per­cent yearon-year growth in rev­enue, while on­line sales in­creased by 28.6 per­cent,” said Chen.

“As China works to­ward re­bal­anc­ing its econ­omy, the suc­cess of Zhe­jiang may point to the di­rec­tion of fu­ture growth,” he said.

The re­cent pol­icy ad­just­ments also helped sta­bi­lize China’s econ­omy. The cen­tral bank cut bench­mark in­ter­est rates by an­other 25 ba­sis points on May 10, the third time in six months, guiding the sub­se­quent vis­i­ble decline in money mar­ket rates.

TheMin­istry of Fi­nance, the cen­tral bank and the China Bank­ing Reg­u­la­tory Com­mis­sion also jointly con­firmed that di­rect debt place­ment be­tween lo­cal gov­ern­ments and cred­i­tors will be al­lowed, aim­ing to in­crease liq­uid­ity and re­lieve the debt bur­den.

All the mea­sures, with more sup­port­ive poli­cies to be re­leased in the com­ing months, will con­tinue to take ef­fect to main­tain the growth rate at around 7 per­cent this year, econ­o­mists said.

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