China growth still seen at 9 pc, says senior Beijing official

CANBERRA: China will achieve nine per cent economic growth in 2008 despite a slowdown during the first three quarters, the head of the country's National Development and Reform Commission predicted Tuesday. "Of course, due to the action of economic turbulence outside of China there is some slowdown in our growth rate," Zhang Ping, chairman of the influential economic body, said during a visit to Australia.

"But according to my predictions I think the growth rate of China's economy will still be kept at nine percent," he added, pointing to the strong domestic market in the world's fourth-largest economy. His comments came a day after Beijing revealed growth slowed to 9.9 per cent in the first nine months, compared to 12.2 per cent in the same period last year as the global credit crisis began taking its toll on China's booming economy.

Third quarter growth was at 9.0 per cent as industrial output also fell, confirming the trend for a slowdown in the heavily export-dependent economy. But Zhang told reporters in Canberra that while his country's economic growth would be impacted by the global credit crunch, it would be underpinned by strong domestic demand from its population of 1.3 billion.

"We are very confident to maintain a steady growth in our future economic development," the Australian Associated Press quoted him as saying through a translator. Chinese growth has averaged 9.8 per cent since the country opened its doors to the outside world three decades ago, he said, recognising however that China is no longer immune to economic infection from the world economy.

He said diminishing international demand had a negative effect on China's exports but added "we are very confident in the future". "China itself is a large market. At the same time, we are in the process towards industrialisation and urbanisation."

Chinese retail sales, a main indicator of consumer spending, increased 22.0 per cent in the first three quarters of 2008 compared with a year earlier, while rising by 23.2 per cent in September, China's National Bureau of Statistics revealed on Monday.

Chinese policymakers started the year focusing heavily on taming inflation caused by a rapid rise in food prices but are now looking more at boosting growth as evidence of an economic slowdown emerges