HONG KONG: China’s economy gained steam in 2017, expanding at a 6.9pc pace in 2017 in its first annual increase in seven years, according to data released Thursday that exceeded economists’ forecasts and the government’s target.

Buoyant consumer spending and robust exports helped drive the faster expansion, as the economy defied expectations of weaker growth in the latter half of the year due to curbs on bank lending.

The data show China’s communist leaders have some extra wiggle room as they strive to wean the economy away from reliance on wasteful and polluting industries and exports in favor of slower but more sustainable consumer spending.

The rebalancing has been complicated by Beijing’s repeated infusions of credit to prevent activity from slowing too much, which has pushed up debt that analysts say is the biggest threat to economic stability.

The government had set a target of 6.5pc growth after the economy expanded at a 6.7pc annual pace in 2016, its slowest in 26 years.

Published in Dawn, January 19th, 2018