China’s economic growth continues to slow
GDP rose by 9.1 per cent in the third quarter, less than what markets and the Chinese government forecast. Chinese banks spend less on foreign currencies. Inflation goes up.
Beijing (AsiaNews/Agencies) – China’s economic growth slowed down to 9.1 per cent in the third quarter, the slowest since the start of 2009, less than the median estimate of 9.3 per cent. However, some analysts do not expect the People’s Bank of China to ease monetary policy since the basics of the economy remain strong. Meanwhile, mainland financial institutions spent 247.3 billion yuan buying foreign currencies last month, down 34 per cent from August.
China's economy grew by 9.1 per cent in the three months to the end of September from a year earlier, down from 9.5 per cent in the previous quarter. The slight drop was due mainly due to lower exports, China’s National Bureau of Statistics said. Financial markets expected it to grow by 9.2 per cent.
“GDP growth was surprising for the market on the downside,” said Stephen Green, economist at Standard Chartered in Hong Kong. “There is clearer deceleration in the third quarter. No change in policy. Small signs of ad-hoc loosening but no macro change in policy.”
Stocks in Hong Kong, Australia and Japan eased and some commodity prices fell after the growth data.
Countering the impact of the global slowdown, fixed-asset investment in the first three quarters of the year chalked up annual growth of 24.9 per cent, slightly ahead of forecasts of 24.8 per cent. Industrial output in September rose 13.8 per cent over last year.
However, the debt crisis of the eurozone, China’s largest trading partner, could affect the world’s second largest economy.
Data released last week show that China’s annual exports to Europe dropped by more than half in August. Overall exports are at their lowest in seven months.
Inflation rate dipped slightly to 6.1 per cent in September but remained well above the official annual target of four per cent.
To fight inflation, Beijing raised interest rates five times and banks’ reserve requirements nine times in the past year.
The risk of sharp economic slowdown in China still exists, and some analysts expect Chinese economic growth to slow down to around 8.6 per cent in the fourth quarter.
China's economy grew by 9.1 per cent in the three months to the end of September from a year earlier, down from 9.5 per cent in the previous quarter. The slight drop was due mainly due to lower exports, China’s National Bureau of Statistics said. Financial markets expected it to grow by 9.2 per cent.
“GDP growth was surprising for the market on the downside,” said Stephen Green, economist at Standard Chartered in Hong Kong. “There is clearer deceleration in the third quarter. No change in policy. Small signs of ad-hoc loosening but no macro change in policy.”
Stocks in Hong Kong, Australia and Japan eased and some commodity prices fell after the growth data.
Countering the impact of the global slowdown, fixed-asset investment in the first three quarters of the year chalked up annual growth of 24.9 per cent, slightly ahead of forecasts of 24.8 per cent. Industrial output in September rose 13.8 per cent over last year.
However, the debt crisis of the eurozone, China’s largest trading partner, could affect the world’s second largest economy.
Data released last week show that China’s annual exports to Europe dropped by more than half in August. Overall exports are at their lowest in seven months.
Inflation rate dipped slightly to 6.1 per cent in September but remained well above the official annual target of four per cent.
To fight inflation, Beijing raised interest rates five times and banks’ reserve requirements nine times in the past year.
The risk of sharp economic slowdown in China still exists, and some analysts expect Chinese economic growth to slow down to around 8.6 per cent in the fourth quarter.
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