China has recently announced that it has recently experienced its fastest economic growth in seven years.
“The national economy has maintained the momentum of stable and sound development and exceeded the expectation with the economic vitality, impetus and potential released and the stability, coordination and sustainability strengthened,” the National Bureau of Statistics of China said in a report. “The economy has achieved stable and healthy development.
The report said that China’s GDP in 2017 was 82,712.2 billion yuan–an increase of 6.9 percent compared to the previous year, beating the government’s target of 6.5 percent. Prior to this, the country experienced a declining growth trend since 2010.
This economic stabilization is good news for the country—the second largest economy in the world—which has been working cut debt for years.
Iris Pang, a Hong Kong-based Greater China economist at ING, told Reuters that China’s growth is “very healthy.”
“The risks that we worried about in 2017, for example, overcapacity cuts having a negative impact on GDP, did not happen because new sectors are actually coming out to help production to grow,” Pang explained.
Reports highlighted that this GDP expansion means that the country’s economy grew two-thirds the size of United States’ in 2017. The South China Morning Post said in an analysis that at this rate, China could actually overtake the states the next decade.
A statement issued after the Central Economic Work Conference last December highlights that the improvements were due to a better economic structure.
“New growth drivers are increasingly important for the economy, contributing more than 30 percent of growth and 70 percent of new jobs,” Tang Jianwei, an analyst with the Bank of Communications, told ChinaDaily.
According to the same report, the industries that performed well in terms of output in 2017 are new-energy vehicles, industrial robots, solar power and integrated circuit.
China continues to push for reforms and address major problems: poverty, pollution, and risks—the country’s “three tough battles,” according to Chinese Premier Li Keqiang.
This year will be the midpoint of the country’s five-year plan, which aims to work on goals such as 50 million urban jobs, annual GDP of 6.5 percent, eradication of urban poverty, and pollution control.