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China’s economy did well in H1-2018, according to official data as GDP expanded 6.7% y/y in Q2, only marginally slower than 6.8% in Q1, notes the research team at Standard Chartered.

Key Quotes

“On a sequential basis, growth picked up to 1.8% q/q in Q2 from 1.4% in Q1, seasonally adjusted. With growth averaging 6.8% in H1, Beijing is well positioned to achieve its 6.5% target for 2018.”

“We maintain our forecast that growth will average 6.5% in 2018, slowing from 6.9% in 2017. We see upside risks to our forecast given the better-than-expected H1 performance.”

“There is no room for complacency, though. The economy continues to face pressure from a housing-market downtrend, rising trade tensions with the US and tighter financial conditions.”