Chinese growth 'set to level off'

8 August 2008

Chinese growth will taper off as 2008 continues, new figures show.

On the day that the nation's capital city stages the opening ceremony for the 29th Olympic Games of the modern era, China's Securities Journal reported that GDP will increase by 10.2 per cent for the third quarter.

This is barely up on April-June's growth of 10.1 per cent, and well down on 2007's average of 11.9 per cent.

Weakening worldwide demand for consumer goods - a large proportion of which are produced in China - rising inflation and government attempts to limit credit provision are all factors behind the relative slowdown.

However, inflation is set to decline for the third quarter, going from seven to 6.6 per cent.

This figure would also be 1.3 per cent down on average inflation for the first half of 2008 - a trend which contrasts with conditions being experienced in Europe and the US.

The growth research was conducted by the State Information Center.

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