Slowdown in GDP eases fears of a hard landing
By Wang Yanlin |
July 14, 2011, Thursday
|
Print Edition
Print Edition
China's gross domestic product slowed to 9.5 percent in the second quarter, easing fears of an abrupt slowdown and giving the central government room to tighten controls to fight inflation.
Economic growth on the whole remained solid and stable, said a National Bureau of Statistics spokesman, and the major challenge for the rest of the year would be how to handle the relationship between maintaining stable growth, adjusting economic structures and managing inflation.
China's gross domestic product grew 9.6 percent year-on-year in the first six months to 20.44 trillion yuan (US$3.15 trillion), the bureau said yesterday. The growth was 9.7 percent in the first three months and 9.5 percent in the second quarter, and compared with last year's 10.3 percent.
"China's slower economic growth is in line with the central government's target of cooling the economy and restructuring it," said bureau spokesman Sheng Laiyun.
China wants to steer expansion to a more manageable level and cool inflation that soared to a three-year high of 6.4 percent in June.
"The strength of the economy will make policy-makers confident and well prepared to impose more tightening measures if needed," Frances Cheung, a senior strategist for Credit Agricole CIB in Hong Kong, told The Associated Press.
China's growth in industrial production and retail sales both eased between January and June. Industrial output expanded 14.3 percent from a year earlier during the period, down from 2010's 15.7 percent. Retail sales gained 16.8 percent to 8.58 trillion yuan, less than last year's 18.4 percent.
Only fixed-asset investment bucked the trend by gaining 25.6 percent to 12.45 trillion yuan, up from the pace of 23.8 percent in 2010 thanks to the affordable housing program.
"China should still treat managing inflation as the top priority at the moment," said Lu Zhengwei, chief economist at the Industrial Bank. He said the economy had performed better than expected in the first half, and there was no fear of the hard landing touted by some analysts.
Lu said the central bank may still have to raise interest rates once or twice this year to tame price jumps.
The disposable income of urban residents rose 13.2 percent from a year earlier to 11,041 yuan through June, while rural residents' income expanded 20.4 percent to 3,706 yuan, the statistics bureau said.
Economic growth on the whole remained solid and stable, said a National Bureau of Statistics spokesman, and the major challenge for the rest of the year would be how to handle the relationship between maintaining stable growth, adjusting economic structures and managing inflation.
China's gross domestic product grew 9.6 percent year-on-year in the first six months to 20.44 trillion yuan (US$3.15 trillion), the bureau said yesterday. The growth was 9.7 percent in the first three months and 9.5 percent in the second quarter, and compared with last year's 10.3 percent.
"China's slower economic growth is in line with the central government's target of cooling the economy and restructuring it," said bureau spokesman Sheng Laiyun.
China wants to steer expansion to a more manageable level and cool inflation that soared to a three-year high of 6.4 percent in June.
"The strength of the economy will make policy-makers confident and well prepared to impose more tightening measures if needed," Frances Cheung, a senior strategist for Credit Agricole CIB in Hong Kong, told The Associated Press.
China's growth in industrial production and retail sales both eased between January and June. Industrial output expanded 14.3 percent from a year earlier during the period, down from 2010's 15.7 percent. Retail sales gained 16.8 percent to 8.58 trillion yuan, less than last year's 18.4 percent.
Only fixed-asset investment bucked the trend by gaining 25.6 percent to 12.45 trillion yuan, up from the pace of 23.8 percent in 2010 thanks to the affordable housing program.
"China should still treat managing inflation as the top priority at the moment," said Lu Zhengwei, chief economist at the Industrial Bank. He said the economy had performed better than expected in the first half, and there was no fear of the hard landing touted by some analysts.
Lu said the central bank may still have to raise interest rates once or twice this year to tame price jumps.
The disposable income of urban residents rose 13.2 percent from a year earlier to 11,041 yuan through June, while rural residents' income expanded 20.4 percent to 3,706 yuan, the statistics bureau said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
