China’s economic growth slows as inflation rises in third quarter
21 Oct 2010
China's economy slowed further but grew at a scorching pace by 9.6 per cent in the third quarter from a year earlier but inflation also grew at the fastest pace in nearly two years, the Chinese National Bureau of Statistics said today.
Following a GDP growth of 11.9 per cent in the first quarter and 10.3 per cent in the second, China is seen to be deliberately easing the growth amid fears that the economy is growing at an unsustainable pace.
China said that its economy grew 9.6 per cent over a year earlier in the third quarter ending September, down from 10.3 per cent the previous quarter, while inflation rose in September to 3.6 per cent from 3.5 per cent in August due to rising food prices and residential related costs like rent.
The growth rate was in line with analyst's predictions that the Chinese government would rein in its fast-paced growth, which could lead to a potential crash later.
The rise in inflation in September of 3.6 per cent was above what Beijing's target of 3 per cent for entire 2010.
The country's industrial output rose by 13.3 per cent in September from a year earlier compared with 13.9 per cent in August.
