Economists in Reuters’ poll forecast second quarter GDP to grow 1.7 percent from a quarter ago.
Despite concerns of the fallout from risks in the financial system, analysts say stability is the word of the day ahead of a once-every-five-years Communist Party Congress coming in the fall when a leadership shuffle is expected.
Beijing has set a growth target of around 6.5 percent for 2017, a tad lower from 6.7 percent in 2016, which was the country’s lowest rate in 26 years.
“This time a year ago, things were a bit dicey with concerns about a growth slowdown and pressure on capital outflows and the currency, but as we expected in the lead-up to party congress, stability has reigned. Growth momentum has stayed pretty high and the authorities have really tamped down the pressures on the capital outflow,” said Stephen Schwartz, head of Asia-Pacific sovereign ratings at Fitch.
The ratings agency on Friday maintained its A+ rating on China with a stable outlook.
Its forecast for China GDP growth this year is 6.5 percent, with upside risk due to strong growth and exports.