China’s economic growth slows in the third quarter
The pace of China’s economic expansion slowed modestly in the third quarter but still grew a robust 9.6% from a year earlier, official figures released Thursday showed.
The rate was in line with economists’ expectations as the Chinese government is focused on reining in runaway growth that could precipitate a crash.
“The national economy kept moving toward the expected direction of macroeconomic control,” the National Bureau of Statistics said in a statement.
The drop from the second quarter’s year-on-year growth of 10.3% was due partly to new regulations in the residential property market and the withdrawing of stimulus, analysts say.
Separate data released Thursday showed China’s consumer price index rising to 3.6% in September from 3.5% in August.
In a surprise move Tuesday, China’s central bank raised the benchmark deposit and lending rates to tackle inflation and rising asset prices. That sparked a sell-off in markets across the world that underscored how much China is viewed as a catalyst for global recovery.
Policymakers are willing to sacrifice double-digit growth for a more sustainable pattern of economic expansion that could affect everything from the price of iron ore to automobile sales figures.
China is still well in line to reach its stated annual growth target of 8%. The World Bank is estimating growth of 9.5% in 2010, while the International Monetary Fund is forecasting growth of 10.5%.