China’s economic growth slows to 9.1 percent in latest quarter amid government controls
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BEIJING — China's rapid economic growth eased in the latest quarter to a still-robust 9.1 percent amid government efforts to prevent overheating.
Growth of the world's second-largest economy in the three months ending in September was down from the previous quarter's 9.5 percent and the lowest level in two years, data showed Tuesday.
The government said that was in line with plans to steer growth that hit 10.3 percent last year to a more sustainable level and cool politically dangerous inflation.
The moderation amid Europe’s debt crisis and high U.S. unemployment might reduce China’s contribution to global growth, though analysts say its expansion cannot shore up a slumping world economy on its own.
“This means China itself is still growing well and will continue to generate demand for commodities and exports,” said Darius Kowalczyk, senior economist for Credit Agricole CIB in Hong Kong. Still, he said, “I don’t think they are going to save the world.”
Beijing has repeatedly hiked interest rates and imposed curbs on construction and other investment to prevent runaway growth and cool inflation that surged to a 37-month high of 6.5 percent in July. It has promised to ease some bank lending curbs to help struggling small businesses but analysts expect it to maintain most of its controls.
A government spokesman said the latest data, which also showed strong retail sales and factory production, was evidence Beijing’s strategy was working and the economy was on the right track.
“There is quite a strong possibility for China’s economy to maintain steady and relatively fast growth,” said a spokesman for the National Statistics Bureau, Sheng Laiyun, at a news conference.
Sheng warned China faces “rising risks” due to weakness in key U.S. and European export markets. But he said it is unlikely to suffer a “double dip,” or relapse into an economic slump.
China is forecast to account for about one-third of global growth this year. But analysts caution that its consumption and investment are too small to offset lower U.S. and European demand. Its multibillion-dollar trade surplus also limits benefits for its trading partners.
Deutsche Bank economist Ma Jun has estimated China would have to grow by 18 percent this year to make up for a 3 percentage point drop in U.S. and European growth.
The International Monetary Fund is forecasting China’s growth this year at 9.5 percent, compared with just 1.5 percent for the United States and a 0.5 percent contraction for Japan — East Asia’s other economic giant.
The latest Chinese growth was the slowest since an 8.9 percent expansion in the third quarter of 2009.
China’s retail sales rose 17 percent in September, slightly ahead of the growth rate for the first half of the year, data showed. Factory production rose 14.2 percent over a year earlier for the quarter.
China’s exporters have been hurt by weak global demand that saw September export growth tumble to 17.1 percent from August’s 24.5 percent. But Sheng said retail sales and other indicators showed the communist government’s efforts to reduce reliance on trade by boosting domestic consumption were gaining traction.
Growth of the world's second-largest economy in the three months ending in September was down from the previous quarter's 9.5 percent and the lowest level in two years, data showed Tuesday.
The government said that was in line with plans to steer growth that hit 10.3 percent last year to a more sustainable level and cool politically dangerous inflation.
The moderation amid Europe’s debt crisis and high U.S. unemployment might reduce China’s contribution to global growth, though analysts say its expansion cannot shore up a slumping world economy on its own.
“This means China itself is still growing well and will continue to generate demand for commodities and exports,” said Darius Kowalczyk, senior economist for Credit Agricole CIB in Hong Kong. Still, he said, “I don’t think they are going to save the world.”
Beijing has repeatedly hiked interest rates and imposed curbs on construction and other investment to prevent runaway growth and cool inflation that surged to a 37-month high of 6.5 percent in July. It has promised to ease some bank lending curbs to help struggling small businesses but analysts expect it to maintain most of its controls.
A government spokesman said the latest data, which also showed strong retail sales and factory production, was evidence Beijing’s strategy was working and the economy was on the right track.
“There is quite a strong possibility for China’s economy to maintain steady and relatively fast growth,” said a spokesman for the National Statistics Bureau, Sheng Laiyun, at a news conference.
Sheng warned China faces “rising risks” due to weakness in key U.S. and European export markets. But he said it is unlikely to suffer a “double dip,” or relapse into an economic slump.
China is forecast to account for about one-third of global growth this year. But analysts caution that its consumption and investment are too small to offset lower U.S. and European demand. Its multibillion-dollar trade surplus also limits benefits for its trading partners.
Deutsche Bank economist Ma Jun has estimated China would have to grow by 18 percent this year to make up for a 3 percentage point drop in U.S. and European growth.
The International Monetary Fund is forecasting China’s growth this year at 9.5 percent, compared with just 1.5 percent for the United States and a 0.5 percent contraction for Japan — East Asia’s other economic giant.
The latest Chinese growth was the slowest since an 8.9 percent expansion in the third quarter of 2009.
China’s retail sales rose 17 percent in September, slightly ahead of the growth rate for the first half of the year, data showed. Factory production rose 14.2 percent over a year earlier for the quarter.
China’s exporters have been hurt by weak global demand that saw September export growth tumble to 17.1 percent from August’s 24.5 percent. But Sheng said retail sales and other indicators showed the communist government’s efforts to reduce reliance on trade by boosting domestic consumption were gaining traction.
