Chinese Economy Heads Toward Stable Growth

11 August 2008

BEIJING: The once sizzling Chinese economy is moving into more temperate zones, according to latest official statistics which show a significant fall in growth during the first half of the year.

The State Information Centre expects GDP to grow by an annualised 10.2% in Q3, up from 10.1% in Q2, but well below last year's 11.9%.

The slump in global demand and Beijing's efforts to rein-in credit have stabilised the figures.

Inflation, which has been running at an average of more than 7% this year, is also expected to dip slightly to 6.9% in Q3.

  • Meantime, that other economic powerhouse, India, has seen its inflation rate soar to more than 12%, despite successive interest rate hikes by the government.

    Rising food and commodities prices have fuelled predictions that inflation will peak at 14% this year.

    However, the nation's central bank believes the slowing global economy and falling oil prices will bring the figure down to below 10% next spring.

  • Data sourced from BBC Online; additional content by WARC staff