Economies in Western China grew faster than Central & Eastern in 1st half of 2016

In the first half of 2016, the underdeveloped western region in China posted the fastest growth rate of 8 percent YOY, well above the national average of 6.7 percent; the central and east regions grew by 7.8 percent and 7.6 percent respectively; while the northeast rust belt increased by 2.2 percent, said the National Development and Reform Commission (NDRC).

In the first six months of 2016, Chongqing and Tibet in the west led the growth at the provincial level, both posted growth speed of 10.6 percent.

In sharp contrast, the northeastern steel-making province of Liaoning saw its economy shrink by 1% in the first half of 2016 from the same period last year, the only province to report a contraction.

The provincial growth imbalance since China tries to restructure its economy from one that is export driven to domestic consumer driven.

To bolster economic growth, NDRC has suggested more policy tools to boost private investment rather than relying on government spending.

The private sector will be important to supporting economic growth, generating about 60 percent of China's GDP and around 80 percent of jobs. However, private investment has been slowing. It increased by only 2.8 percent in H1, down from 3.9 percent in the first five months of the year.