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Economy recovers slightly

China’s economy showed slight signs of recovery in August. However, the situation remains tense and fragile. Industrial production, retail sales and fixed asset investment grew stronger than predicted. However, the increase in retail sales was statistically driven and the higher industrial production was partly due to an increase in electricity output due to the heat wave and thus a one-off effect, Bloomberg reported. Automobile production also increased. Analysts now expect growth of 3.5 percent. The government originally set a target of 5.5 percent.

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