China's regions demonstrate huge economic divergence
During the first half of 2016, China’s regional economies demonstrated a huge market divergence in performance with provinces still reliant on mining and steel making reporting weak or even zero growth, though some larger cities kept thriving.
The recently published provincial growth figures clearly illustrate surging imbalances in China as the government makes an attempt to restructure the national economy from a dependence on heavy industry as well as exports to one powered more by domestic consumption.
The northeastern steel-making province of Liaoning posted its economy shrank by about 1% during the first half of 2016 from the same period of 2015, the only province in this Asian country to post a contraction. It was in steep contrast to nationwide growth of 6.7%.
Liaoning appears to be one of the last of China’s 31 provinces to announce GDP data, that typically are issued weeks after the national readings.