China's economy grows at 11.5 per cent in third quarter
China's economy expanded at a blistering pace in the third quarter, even as it declared the immediate overheating risk had receded thanks to a series of control measures.
By Agencies |
BEIJING: China's economy expanded at a blistering pace in the third quarter, the government said Thursday, even as it declared the immediate overheating risk had receded thanks to a series of control measures.
The world's fourth-largest economy grew by 11.5 per cent in the third quarter and the first nine months of 2007, compared with the same periods a year earlier, the National Bureau of Statistics said.
"We have prevented the economy shifting from speedy growth to overheating," bureau spokesman Li Xiaochao told a briefing. "Bottleneck problems have been eased."
As evidence of a slight slowdown, Li pointed out that economic growth in the second quarter had been 11.9 percent, while inflation in September was 6.2 per cent, down from 6.5 per cent in August.
However, concerns lingered about possible policy responses to the growth data, with Shanghai stock prices closing the day 4.80 per cent lower as investors worried about monetary tightening.
"Despite the modest moderation in activity growth and inflation, they remain above the comfort zone for policymakers," said Goldman Sachs economist Hong Liang in a research note.
"We expect the central bank to continue to depend on credit rationing as its main policy tool."
No matter what the government does, China is all but certain to experience its fourth consecutive year of double-digit growth in 2007 and is expected to soon overtake Germany as the world's number three economy.
The world's fourth-largest economy grew by 11.5 per cent in the third quarter and the first nine months of 2007, compared with the same periods a year earlier, the National Bureau of Statistics said.
"We have prevented the economy shifting from speedy growth to overheating," bureau spokesman Li Xiaochao told a briefing. "Bottleneck problems have been eased."
As evidence of a slight slowdown, Li pointed out that economic growth in the second quarter had been 11.9 percent, while inflation in September was 6.2 per cent, down from 6.5 per cent in August.
However, concerns lingered about possible policy responses to the growth data, with Shanghai stock prices closing the day 4.80 per cent lower as investors worried about monetary tightening.
"Despite the modest moderation in activity growth and inflation, they remain above the comfort zone for policymakers," said Goldman Sachs economist Hong Liang in a research note.
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"We expect the central bank to continue to depend on credit rationing as its main policy tool."
No matter what the government does, China is all but certain to experience its fourth consecutive year of double-digit growth in 2007 and is expected to soon overtake Germany as the world's number three economy.
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