(Yicai) July 16 -- China's economy expanded 4.7 percent in the first half of this year, staying in line with the country's annual growth target, thanks to strong new growth drivers and improving consumption.

Gross domestic product rose to CNY69.57 trillion (USD10.28 trillion) in the January to June period, according to data released by the National Bureau of Statistics yesterday. The economy grew 5 percent in the first quarter and 4.3 percent in the second.

China's urban surveyed unemployment rate fell to 5 percent last month from 5.1 percent in May, while averaging 5.2 percent over the first six months of this year. The first-half per capita disposable income was CNY22,981 (USD3,395), a nominal jump of 5.2 percent and an actual increase of 4.2 percent from a year ago.

Although the second-quarter growth was slower, the fundamentals of stable economic operation and the development trend towards greater innovation and higher quality have not changed, said Mao Shengyong, deputy director of the NBS. The year-on-year GDP jump of CNY3.6 trillion (USD531.9 billion) in the first half was the largest in the past five years, Mao pointed out.

The added value of high-tech manufacturing industries above a designated size jumped 13.3 percent in the first half from a year earlier. Industries related to artificial intelligence, such as integrated circuit and intelligent vehicle-mounted equipment manufacturing, surged more than 30 percent.

New energy vehicles accounted for over 60 percent of autos sold through retail channels for three straight months, driving the output of lithium-ion batteries to climb almost 40 percent.

New growth drivers represented by high-end manufacturing, digital economy, and modern services contributed more than 40 percent to China's first-half economic growth, Mao noted, citing preliminary calculations.

In terms of consumption, retail sales of consumer goods and services rose 2.7 percent in the first half from a year ago, while climbing 1 percent to CNY4.27 trillion last month compared with a 0.6 percent drop in the previous month. Service and commodity retail sales jumped 5.3 percent and 1.1 percent, respectively, in the first six months.

The growth of online retail and rural consumption is leading, highlighting the potential of the digital economy and urban-rural integration, said Pang Ming, a member of the China Chief Economist Forum. The year-on-year increase in retail sales last month shows the effectiveness of fiscal expenditures and policies to promote consumption, Pang noted, adding that the moderate rebound in consumption played a stabilizing role in the overall economy, although not enough to form a strong driving force.

The national fixed assets investment, excluding rural households, fell 5.7 percent to CNY22.64 trillion in the first half from a year earlier. Investment in real estate development tumbled 18 percent, while that in high-tech industries rose 4.6 percent and in internet and related services surged 40 percent.

Consumption-promoting policies will likely be strengthened in the second half of this year, while the amount of funds for trade-in programs may increase, said Wang Qing, chief macro analyst with Golden Credit Rating International.

China's economy is expected to expand between 4.6 percent and 4.7 percent this year, remaining stable in the second half thanks to a gradual improvement in production, rising investment in infrastructure, and a low base, according to China Galaxy Securities. The growth in the second quarter was likely the slowest for this year.

Editor: Martin Kadiev