- Title: CHINA: Third quarter economic growth quickens to 8.9 percent
- Date: 23rd October 2009
- Summary: BEIJING, CHINA (OCTOBER 22, 2009) (REUTERS) CHINESE STATE COUNCIL NEWS CONFERENCE JOURNALISTS (SOUNDBITE) (Mandarin) LI XIAOCHAO, SPOKESMAN FROM CHINA'S NATIONAL BUREAU OF STATISTICS SAYING: "According to preliminary estimates, the gross domestic product of China in the first three quarters of this year was 21,781.7 billion yuan, a year-on-year increase of 7.7 percent, which was 0.6 percentage points higher than that in the first half of this year. In terms of growth by quarters, it was up 6.1 percent for the first quarter, 7.9 percent for the second quarter, and 8.9 for the third quarter." JOURNALISTS (SOUNDBITE) (Mandarin) LI XIAOCHAO, SPOKESMAN FROM CHINA'S NATIONAL BUREAU OF STATISTICS SAYING: "From the current trends, meanwhile, we also noted that the GDP growth in the fourth quarter last year was 6.8 percent, we are confident to say that we can achieve the goal of securing eight percent GDP growth this year. There is no doubt about it." REUTERS' CHINA ECONOMICS EDITOR ALAN WHEATLEY TYPING ON COMPUTER WHEATLEY'S FACE WHEATLEY TYPING (SOUNDBITE) (English) REUTERS CHINA ECONOMICS EDITOR ALAN WHEATLEY SAYING: "Although they are now more confident that the recovery is on a stable footing, they are not so confident that they are going to change policy, which I think is sensible for now. After all, they still have got exports falling. But I do think over the next few months, probably the start of next year, we will see clearer signs that they are starting to, let's not say tighten policy, but remove some of the policy stimulus that has been in the pipeline this year." WHEATLEY TYPING ON COMPUTER COMPUTER SCREEN (SOUNDBITE) (English) REUTERS CHINA ECONOMICS EDITOR ALAN WHEATLEY SAYING: "There was one government researcher this morning who said that this could become a serious problem next year. Three percent of inflation he reckoned on average over 2010. That could become a problem for policy makers here in China when you consider how low interest rates are. So it is definitely something to watch." TRAFFIC ON STREET CARS DRIVING ON STREET PEOPLE WALKING ON STREET (SOUNDBITE) (Mandarin) 29-YEAR-OLD BEIJING CITIZEN ZHANG YAN SAYING: "When the financial crisis first started, there was almost no export orders. But the situation has changed a lot since the national day holiday." PEOPLE WALKING ON STREET (SOUNDBITE) (Mandarin) 28-YEAR-OLD BEIJING CITIZEN XU JING SAYING: "My own feeling is that there has been a sign of inflation, and renminbi is a little bit devalued. People's purchasing power is weakened and our living standards have relatively gone down." PEOPLE WALKING ON STREET
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- Topics: Economic News,Domestic Politics
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- Story Text: China's annual gross domestic product (GDP) of growth accelerated in the third quarter to 8.9 percent from 7.9 percent in the second quarter, the National Bureau of Statistics said on Thursday(October 22).
"According to preliminary estimates, the gross domestic product of China in the first three quarters of this year was 21,781.7 billion yuan, a year-on-year increase of 7.7 percent, which was 0.6 percentage points higher than that in the first half of this year. In terms of growth by quarters, it was up 6.1 percent for the first quarter, 7.9 percent for the second quarter, and 8.9 for the third quarter," Li Xiaochao, spokesman from China's National Bureau of Statistics told reporters.
A breakdown of growth so far this year showed just how effective Beijing's 4 trillion yuan ($585 billion) pump-priming package has been in galvanising investment and putting the once-fanciful eight percent growth goal target easily in reach.
"From the current trends, meanwhile, we also noted that the GDP growth in the fourth quarter last year was only 6.8 percent, we are confident to say that we can achieve the goal of securing eight percent GDP growth this year. There is no doubt about it," said Li.
Alan Wheatley, a Reuters China economics editor based in Beijing, said he didn't expect to see any change soon to the current loose monetary policy and proactive fiscal stance adopted by the government a year ago.
"Although they are now more confident that the recovery is on a stable footing, they are not so confident that they are going to change policy, which I think is sensible for now. After all, they still have got exports falling. But I do think over the next few months, probably the start of next year, we will see clearer signs that they are starting to, let's not say tighten policy, but remove some of the policy stimulus that has been in the pipeline this year," said Wheatley.
However, he cautioned about a return of consumer inflation as prices have been rising steadily month on month.
"There was one government researcher this morning who said that this could become a serious problem next year. Three percent of inflation he reckoned on average over 2010. That could become a problem for policy makers here in China when you consider how low interest rates are. So it is definitely something to watch," said Wheatley.
Residents in Beijing said they have seen signs of economic recovery, but also rising prices.
"When the financial crisis first started, there was almost no export orders. But the situation has changed a lot since the national day holiday," said 29-year-old Beijing citizen Zhang Yan, who works in a trade company.
"My own feeling is that there has been a sign of inflation, and renminbi is a little bit devalued. People's purchasing power is weakened and our living standards have relatively gone down,"said another resident Xu Jing.
With the United States and Europe emerging from recession with huge debt burdens that will weigh on consumption, global policymakers are looking to China to carry more of the burden of growth by expanding domestic demand.
Data released on Thursday by the National Bureau of Statistics showed China doing just that.
Most economists expect even stronger growth in 2010 given this year's relatively low base of comparison, the likelihood of a partial recovery in net exports and the fiscal stimulus already in the pipeline. - Copyright Holder: REUTERS
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