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East China reports higher industrial output growth in April
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China's eastern region, the powerhouse of the country's economy, reported 6.7 percent of growth in industrial output in April, according to figures released by the Ministry of Industry and Information Technology (MIIT) Thursday.

The growth rate is three percentage points higher than that of the first quarter, showing a positive trend, said the ministry.

In April, the growth of industrial output in the coastal province of Shandong was up 7.6 percentage points from the first quarter, and that for Jiangsu climbed 3.8 points, and up 2.6 points for Guangdong.

Zhejiang Province saw industrial production increase 0.2 percent, reversing a 5.6 percent decline in the first quarter.

Industrial output of these four provinces accounted for 42.3 percent of the nation's total, said the ministry.

The export-led eastern region looked to the domestic market for growth after foreign trade tumbled due to sluggish overseas demand.

The ministry predicted national industrial output growth will exceed 10 percent in the second half of this year, buoyed by the government's stimulus package and growing domestic demand.

The government this year has announced specific plans to support 10 industries, including textiles, petrochemicals and logistics.

National industrial output gained 8.3 percent in March and 7.3 percent in April, after falling 3.8 percent in the first two months.

"The rapid pace of decline in production in some regions and industries has slowed, while companies have become more responsive to the economic downturn and market fluctuations," the ministry said without elaborating.

Despite an optimistic outlook, the ministry also warned that the basis for a broad-based recovery was not on solid footing and many uncertainties and difficulties persisted because of weak export demand and overcapacity in the world's third-largest economy.

(Xinhua News Agency May 22, 2009)

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