Chinese economy
January 17, 2012
Growth in the Chinese economy slowed to 8.9 percent in the last quarter of 2011, authorities said Tuesday, announcing results that still exceeded the Communist Party's minimum goal of 8 percent growth.
The figures marked the slowest growth in the world's second-largest economy in two and a half years. Growth in the previous quarter was 9.1 percent.
Annual growth last year was also down, albeit still at a rate of 9.2 percent - down from 10.4 percent in 2010.
Growth decelerated as Beijing bumped up interest rates and tightened investment curbs to prevent overheating.
Despite its economic expansion still being the envy of the world, Chinese authorities are concerned with the direction the economy is going to take in 2012.
Declining export markets such as Europe and the US do not bode well, whilst questions remain over the longevity of an investment boom, which has been driving growth as the country's property market shows signs of frailty. Persistent inflation and debt are also seen as a sticky issue for the Chinese.
In 2012, China faces "complexity and challenges" due to global malaise and pressure for prices to rise, Ma Jiantang, commissioner of the National Bureau of Statistics, told a press conference.
He added, however, that the "fundamentals of China's long-term steady economic growth have not changed."
Author: Darren Mara (AP, AFP)
Editor: Anne Thomas