Monday, October 20, 2008

Chinese GDP growth slows to 9 % in 3rd quarter

Economic growth in China, one of the fastest-growing economies in the world and the biggest contributor to global growth, slipped to 9 percent in the third quarter of this year.

The slowest pace in China’s economy for more than five years, as industrial production and construction slackened because of weak exports, showing a trend of a slowdown amid the current global financial crisis.

In the third quarter, the gross domestic product (GDP) growth rate slowed down to 9 percent, from 10.6 percent in the first quarter, 10.1 percent for the second quarter and 10.4 percent in the first half of 2008.

China's economic growth has been on a steady decline since peaking in the second quarter of 2007. The slowing world economy pummeled by the global financial crisis and weaker demand for Chinese exports on international markets heavily weighted on the Chinese economy, according to Li Xiaochao, spokesperson for the National Bureau of Statistics.

"However, the Chinese economy has maintained stable and relatively fast growth this year as the 9.9 percent growth rate in the first nine months was still higher than the annual average growth rate of 9.8 percent since China adopted the reform and opening policy in the late 1970s," Li said.

1 comment:

Anonymous said...

China’s economy feels the effects of the global economic crisis. Although the GDP continues to grow but the rate is slow. The steel exports down, car sales declining for the first time in two years and thousands of workers in the toys, clothing industry and other exports losing their jobs. Corporate profits and fiscal revenue are falling, and capital markets continue to swing and be sluggish.
Ironically, China's leaders need to keep growth rates high to reduce minimize job losses that could stoke political tensions.