Chinese growth set to stabilise

August 8, 2008

, CHINA, August 8 – The Chinese economy is set to stabilise, according to official figures, after seeing a sharp fall in growth in the first half of the year.

The economy is expected to grow 10.2%, on an annual basis, in the third quarter, up from 10.1% in the second.

Growth has slowed markedly this year – down from 11.9% in 2007 – on the back of sagging global demand and government measures to rein in excessive credit.

The economy has also faced rising inflation driven by higher food prices.

Twin focus

According to a report by the State Information Centre, printed in the China Securities Journal, inflation is now slowing.

The government agency expects consumer price inflation of 6.6% in the third quarter, down from an average of more than 7% so far this year.

The economy will fall short of the explosive growth rates of recent years in 2008 although it is still expected to expand by more than 10%.

However, this would be much lower than last year\’s 11.9% figure.

The economy grew by 10.6% in the first quarter.

The Chinese authorities have said its efforts to keep inflation in check would not come at the expense of growth.

President Hu Jintao said last week that the government would focus on both objectives simultaneously.

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