Economy grows at 9.1% rate, indicating stability
October 19, 2011, Wednesday
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Print Edition
Print Edition
China's economy is unlikely to experience a double-dip growth pattern as third-quarter growth remained stable and macroeconomic policies were proved effective, the National Bureau of Statistics said yesterday.
Gross domestic product in China managed to expand 9.1 percent from a year earlier between July and September, only a slight slowing from 9.5 percent in the second quarter and 9.7 percent in the first three months.
The economic output in the first three quarters thus rose to 32 trillion yuan (US$5 trillion), up 9.4 percent year on year, according to data released by the bureau.
"It's no easy job to achieve such a growth rate under complicated global economic situations and new circumstances in the domestic market," said Sheng Laiyun, a bureau spokesman. "With stable investment and robust consumption, China's economy is more likely to continue stable growth instead of a second dip."
Fixed-asset investment in the first nine months jumped 24.9 percent annually to 21.2 trillion yuan, little changing from 25 percent in the months up to August. The investment was upheld by various new projects kicked off in the first year of the 12th Five-Year Plan (2011-2015) period.
Meanwhile, retail sales in September gained 17.7 percent from a year earlier to 1.58 trillion yuan, up from 17 percent a month earlier.
Industrial production also quickened 0.3 percentage point from August to grow 13.8 percent last month.
"China's economy performed slightly better than expected in the third quarter, mainly thanks to solid domestic demand," said Zhang Zhiwei, an economist at Nomura. "With a global economic downturn in sight and inflation still high, China needs to keep its policies consistent while flexible."
Recent reduction of inflationary pressure has made it possible for China to adjust its monetary policies in a bid to support growth. The Consumer Price Index, the main gauge of inflation, rose 6.1 percent year on year last month, moderating for a second month from August's 6.2 percent and July's 6.5 percent.
Qu Hongbin, an economist at HSBC, estimated the central bank may allow more liquidity in the market after a lack of credit has crushed some small firms in Wenzhou of Zhejiang Province, and pushed them to rely on illegal private lenders.
"But the possible adjustment does not mean a complete reverse of the current policy stance, especially for the real estate market," Qu said in an earlier interview.
Some economists said China won't shift its anti-inflation bias before a clear downward trend in inflation. One concern is that powerhouse countries like the United States still hold onto a rather loose monetary policy that may further fan global inflation.
Zhou Hao, an economist at the Australia and New Zealand Banking Group Ltd, said he thinks China's economy is heading towards a soft landing by expanding 9.4 or 9.5 percent this year.
Gross domestic product in China managed to expand 9.1 percent from a year earlier between July and September, only a slight slowing from 9.5 percent in the second quarter and 9.7 percent in the first three months.
The economic output in the first three quarters thus rose to 32 trillion yuan (US$5 trillion), up 9.4 percent year on year, according to data released by the bureau.
"It's no easy job to achieve such a growth rate under complicated global economic situations and new circumstances in the domestic market," said Sheng Laiyun, a bureau spokesman. "With stable investment and robust consumption, China's economy is more likely to continue stable growth instead of a second dip."
Fixed-asset investment in the first nine months jumped 24.9 percent annually to 21.2 trillion yuan, little changing from 25 percent in the months up to August. The investment was upheld by various new projects kicked off in the first year of the 12th Five-Year Plan (2011-2015) period.
Meanwhile, retail sales in September gained 17.7 percent from a year earlier to 1.58 trillion yuan, up from 17 percent a month earlier.
Industrial production also quickened 0.3 percentage point from August to grow 13.8 percent last month.
"China's economy performed slightly better than expected in the third quarter, mainly thanks to solid domestic demand," said Zhang Zhiwei, an economist at Nomura. "With a global economic downturn in sight and inflation still high, China needs to keep its policies consistent while flexible."
Recent reduction of inflationary pressure has made it possible for China to adjust its monetary policies in a bid to support growth. The Consumer Price Index, the main gauge of inflation, rose 6.1 percent year on year last month, moderating for a second month from August's 6.2 percent and July's 6.5 percent.
Qu Hongbin, an economist at HSBC, estimated the central bank may allow more liquidity in the market after a lack of credit has crushed some small firms in Wenzhou of Zhejiang Province, and pushed them to rely on illegal private lenders.
"But the possible adjustment does not mean a complete reverse of the current policy stance, especially for the real estate market," Qu said in an earlier interview.
Some economists said China won't shift its anti-inflation bias before a clear downward trend in inflation. One concern is that powerhouse countries like the United States still hold onto a rather loose monetary policy that may further fan global inflation.
Zhou Hao, an economist at the Australia and New Zealand Banking Group Ltd, said he thinks China's economy is heading towards a soft landing by expanding 9.4 or 9.5 percent this year.
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