Steel and stimulus power China's strongest economic surge since 2015

Steel and stimulus power China's strongest economic surge since 2015

During the first quarter China's economy expanded faster than expected as higher government infrastructure spending as well as a gravity-defying property boom helped to spur industrial output by the most for over two years.

Surge of 6.9% turned to be the fastest in six quarters, with positive retail sales and exports and forecast-beating March investment - all suggesting that the Chinese economy is capable of carrying solid momentum into spring.

However, most experts tell that the first quarter might be as good as it gets for China in 2017, and they worry that Beijing is still mostly relying on stimulus as well as “old economy" surge drivers, mostly the steel industry and a property market, demonstrating signs of overheating.

The Chinese government is used to relying on infrastructure development for the purpose of sustaining growth in the long term. That’s what financial experts at ANZ told in a note.

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