China will report gross domestic product data for the second quarter on Friday amid worries about the country’s economic slowdown and the health of its financial system. Here are key points to watch:
Headline growth: China’s GDP growth has slowed for four of the past five and 15 of the past 20 quarters. The legislature approved a full-year growth target of 6.5 to 7 per cent for 2016, down from last year’s target of “around 7 per cent”. Actual growth was 6.9 per cent last year and 6.7 per cent in the first quarter. Economists expect 6.6 per cent growth for the second quarter, according to a Reuters poll. If growth falls short of that level, policymakers will face more pressure to increase fiscal and monetary stimulus.
Real estate: The revival of China’s property market, especially in large cities, has been crucial to enabling China’s economy to avoid a hard landing. But growth in property investment slowed in May following four straight months of acceleration, hinting that developers believe the rally may not last. China will release property investment, construction and sales data on Friday along with GDP. If activity remains strong it will be a sign that real estate will continue to support growth in the second half.