China’s economy grew 6.9% during the April-June quarter, beating forecasts by analysts of 6.8% growth, Reuters reported on Monday. Industrial output, consumption and exports have all shown an upward trend in the last quarter, leading to a better-than-expected GDP growth rate.

The National Bureau of Statistics however adopted a cautious tone. “Overall, the economy continued to show steady progress in the first half,” the bureau’s statement said. “But international instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains.”

Many analysts expect the Chinese economy to slow down in the second half of the year, due to policy measures to reduce housing prices and a rapid increase in debt. The government is aiming for a GDP growth rate of 6.5% in 2017, slightly lower than 2016’s actual figure of 6.7%.

China’s factory output grew 7.6% in June, the fastest in three months. Retail sales rose 11% in June from a year earlier, the fastest pace since December 2015. The country’s steel output rose 5.7% in June to a record 73.23 million tonnes.

In China, the fiscal year begins on January 1.