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Growth rate to dip in third quarter
(CRIENGLISH.com)
Updated: 2004-09-03 16:01

A new official forecast indicates that China's economy is expected to grow an annualised 9 per cent in the third quarter of this year, down from 9.6 per cent three months earlier.

According to a report by the State Information Centre, the slowdown is due to a comparatively higher base from a year earlier, as well as the effects of a clampdown on bank lending and restricted investment in overheated sectors.

But officials have cautioned that despite the easing growth, it is too early for China to relax its macroeconomic control measures.

On Wednesday, central bank governor Zhou Xiaochuan warned that China risked another wave of economic overheating if it relaxed its macro administrative controls too early.

China's gross domestic product is forecast to grow about 9 per cent for the full year. GDP in the first half grew 9.7 per cent, compared with an adjusted 8.8 per cent in the same period last year.

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