China’s GDP expanded by 6.7 percent in the three months leading up to June, according to the National Bureau of Statistics of China.

The rate climbed past the 6.6 percent prediction, and analysts said the data shows that the second largest economy in the world could be stabilising. The firm growth was maintained following rapid state sector investment in infrastructure.

Industrial output and retail sales also beat forecasts, and are said to be contributing to China’s economic growth. Industrial output grew by 6.2 percent, compared to forecasts of 5.9 percent amid concerns about overcapacity. Retail sales rose by 10.6 percent, beating forecasts for 10 percent growth.

However, fixed asset investment missed expectations, growing by nine percent from January to June, while economists estimated a growth of 9.4 percent.

Many expected China’s economy to collapse this year, following last year’s stock market crash and the depreciation of the yuan

Many expected China’s economy to collapse this year, following last year’s stock market crash and the depreciation of the yuan. Some economists, including Willem Buiter, Chief Economist at Citigroup, discussed the possibility of China falling into a recession in mid-2016.

However, the country proved critics wrong, as the government successfully smoothed out growth trends across a multitude of sectors. Infrastructure has surged, the property market has had a strong first half, and personal consumption – including sales of cars and electronics – has been buoyant.

In order to continue this growth, the country will have to maintain investment from beyond the state, as in recent months China’s growth has been powered almost entirely by the government.

The decline in the private sector – shrinking from growth of more than 40 percent in 2011 to just 2.8 percent in the first half of this year – does not bode well for the economy, according to The Economist. Meanwhile, the state has doubled its investment in the country since 2011.