China April growth stabilizing

In April, investment and factory output in the world’s most populous country stabilized as a result of policy measures of the government. Imports and exports have fallen in April.

However, this might be a temporary boost for Chinese economy because growth will certainly retard when the government addresses excessive factory capacity as well as high debt levels.

According to a poll, industrial output of the world's second-largest economy might have grown 8.9% in April from previous year and 8.8% in March.

To support the slowing economy, the government has stepped up construction of affordable housing and railways and slash taxes for small companies.

Traditional engines of investment and exports are replaced by economy driven by consumption. The government is making efforts to avoid a quick slowdown which might increase job losses and endanger social stability.

Trade surplus in April is expected to rise to $13.9 billion compared to $7.7 billion in March. In April, retail sales might have grown 12.2% as in March.

In the second quarter, economic growth of China might decrease to 7.3% from 7.4% in the previous quarter. It is expected that in 2014 the economy will grow at 7.3% - the slowest pace in 24 years.

In April annual consumer inflation is predicted go down to 2.0% compared to 2.4% in March. Producer price index is projected to fall for 26th successive month to 1.8%.

On Thursday trade data will be released and inflation data will be released on Friday.