Chinese economy still booming

Beijing (AsiaNews/Agencies) – The growth of the Chinese economy continues, albeit at a slower pace, this according to figures released by the State Information Centre. In the second quarter of this year, growth should reach 9.1 per cent compared to 9.6 per cent in the same period last year and 9.4 per cent for the first three months of this year.

The State Information Centre did not provide a reason for the slowdown in economic growth, except to say that industrial production would continue to ease.

The Chinese government has targeted growth of around eight per cent this year but many non-government economists expect nine percent, or even more.

At the same time, the consumer price index is expected to rise by about two percent in the April-June period, compared to a 3.6 per cent increase last year and 2.8 per cent in the first quarter of this year.

Fixed-asset investment, i.e. the amount of capital invested in the country's infrastructure, is forecast to grow around 20 per cent in the second quarter; that is down by about 11.5 per cent over the same period last year and 2.8 per cent less than in the first three months of this year.

China is the fastest growing major economy as the country becomes the workshop of the world with global consequences that range from lost jobs in developed countries, to changing capital flow and soaring prices on commodity markets.

In China itself, only residents of the country's east coast can afford rising prices for finished goods, whilst farmers are increasingly unable to cope with rising prices for raw materials. 

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