China’s economic growth cools

| July 13, 2011 | 0 Comments
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The National Bureau of Statistics has today reported China’s economic growth slowed in the second quarter.

However, growth was still strong at an annual rate of 9.5% in the April to June period, albeit down from 9.7% in the previous quarter.

The cooling of growth comes as the country endeavours to bring inflation under control by tightening monetary policy.

Figures earlier this week showed inflation reached the highest level in 3 years in June – suggesting that the central bank will continue to lift interest rates.

Just last week, the People’s Bank of China raised rates for the third time this year to combat stubbornly high inflation.

Many other central banks in Asia have adopted the same measures due to rising inflation.

Consumer prices rose by 6.4% in June on an annual basis – slightly higher than expectations of an annual rate of 6.3% – and the fastest pace since July 2008.

The rise was attributed to soaring food prices – in particular meat. Last month, meat and poultry prices rose by 32.3%, while the price of pork rose 57.1%.

Meanwhile, the cooling of China’s economic growth has raised concerns among some economists over how this might affect the world’s other major economies.

However, China’s growth remains one of the fastest in Asia and it is likely to remain the world’s second largest economy for some time to come.

A recent report suggested China is on track to become the world’s largest economy by 2025 due to its rapidly growing population and booming industry.

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