BEIJING: China’s economic growth eased for the seventh straight quarter, data showed yesterday, but analysts say the slowdown has almost bottomed out, just as the ruling Communist Party prepares for a pivotal meeting.
The 7.4 percent expansion in the three months to the end of September was the weakest since the first quarter of 2009 as persistent problems in key export markets in Europe and the United States continued to hurt the economy. The economy grew 7.6 percent in the previous quarter.
However, positive indicators for September were seized upon as signs that the economy is bottoming out and that growth could pick up again in the next three months, reducing the need for any major stimulus.
National Bureau of Statistics spokesman Sheng Laiyun told reporters “signs that the national economy is stabilising are clearer”.
He added: “The main indicators showed that although growth still slowed, the pace of the decline slowed and some indicators even increased at a faster speed.”
State media quoted Premier Wen Jiabao saying the economy began stabilising over the past three months and should meet Beijing’s 2012 goal of 7.5 percent growth. The third-quarter result lowered growth for the first nine months to 7.7 percent, but Sheng reiterated Wen’s comments, saying China was “fully confident” of hitting its target, although he added the economy still faced “uncertainties”.
He also said a “mild rebound” was possible in the fourth quarter, a view echoed by some analysts. “Basically it’s obvious that the economy is bottoming out, and economic growth will likely be higher in the fourth quarter than the third quarter,” said Lu Ting, Hong Kong-based China economist for Bank of America Merrill Lynch. AFP
