Workers install numerical controlled machine in LGMazak Company in northwest China's Ningxia Hui Autonomous Region, May 19, 2015. (Photo: Xinhua/Wang Peng)
During Wednesday's press conference, Sheng said that a national plan to coordinate development in the north, including capital Beijing and neighboring Tianjin City and Hebei Province, will add growth momentum to the economy as it will further boost industrial and urban development.
Beijing's transport director announced plans on Monday to build a 1,000-km suburban rail network providing better access to neighboring cities.
Sheng said the country's Internet Plus action plan, which seeks to stir innovation in various industries from consumption to manufacturing and finance, is certain to accelerate structural changes and industrial upgrades.
Speaking during a meeting with economists and entrepreneurs on Friday,Chinese Premier Li Keqiang said China's economy still boasts "remarkable tenacity, potential and flexibility". He said China's potential for medium-high growth remains underpinned by strong, long-term fundamentals.
BETTER PERFORMANCE EXPECTED
The second-quarter data failed to buoy the stock market, which fell sharply on Wednesday. The fall extended a retreat seen on Tuesday, reversing a rebound that had lasted for three consecutive trading days.
Nevertheless, economists are upbeat about the economic outlook and believe the government's full-year growth target, set at around 7 percent for 2015, is attainable despite growing concerns about recent volatility in the stock market.
Steven Zhang, an analyst from Morgan Stanley Huaxin, said the stock market rout will have limited negative impact on the real economy due to bold regulatory measures that prevented risks from spreading to sectors including real estate while the bubble is still controllable.
UBS said in an earlier report that it does not anticipate the stock market rout will lead to systemic financial problems in China, with only a limited impact on the real economy.
After years of slowdown, it is widely anticipated that the much-pressured economy will finally bottom out and regain momentum during the rest of the year.
"We think economic growth in the latter half will most likely outperform that in the first half," Sheng said, forecasting that government pro-growth policies in the first half will have more of an effect later this year.
The spokesperson cited signs of warming in sales and investment in the property market and noted that major construction projects approved in the first half will start operation.
Official data also showed factory activity has remained in expansion territory for four consecutive months, and June's exports reversed a three-month losing streak by rising 2.1 percent from a year earlier.
Andrew Colquhoun, head of Asia-Pacific sovereigns at Fitch Ratings, said he expects a further sequential pick-up in the second half following recent monetary and credit policy easing.
Lian Ping, chief economist with Bank of Communications, forecast a stronger second half will bring the full year growth rate to 7.1 percent on recovering exports and stronger domestic consumption. HSBC economists agreed.
More easing measures from the government could be expected amid signs of stabilization in the economy.
"In order to strengthen and sustain the recovery, more policy easing measures are still needed and likely in the second half. We forecast another 25 basis points of policy rate cut and 200 basis points reserve ratio cut," a report of HSBC said on Wednesday.
Despite optimism from the latest data, Sheng cautioned more needs to be done to ensure solid stabilization of the economy by strictly implementing the government's policies.
