July 15, 2016 / 2:49 AM / 3 years ago

Consumption accounts for 73.4 percent of China first-half GDP growth: stats bureau

People shop at a new year market ahead of the upcoming Spring Festival in Zaozhuang, Shandong province, January 28, 2016. REUTERS/China Daily

BEIJING (Reuters) - Final consumption accounted for 73.4 percent of China’s first-half economic growth, the statistics bureau said on Friday.

Capital formation contributed 37 percent of growth, while net exports were a -10.4 percent drag on growth, the National Bureau of Statistics said.

The data show China’s efforts to rebalance its economy towards consumption appear to be showing results. In 2015, consumption accounted for 66.4 percent of economic growth.

Final consumption accounted for 84.7 percent of growth in the first quarter, though first-quarter consumption data is often higher than full-year as trade and investment slow due to a long holiday and consumer spending increase.

Exports have been a drag on the economy for some time as shipments have declined on weak external demand.

While China’s economy shows signs of stabilization, uncertainties in the global economy are increasing due to Britain’s vote to leave the European Union, the statistics bureau said.

The stats bureau added that China’s survey-based unemployment rate in 31 major cities is currently around 5.0 percent.

China’s economy grew 6.7 percent in the second quarter from a year earlier, steady from the first quarter and slightly better than expected as the government stepped up efforts to stabilize growth in the world’s second-largest economy.

Reporting by Kevin Yao and Winni Zhou; Writing by Elias Glenn; Editing by Kim Coghill

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