China’s economy likely to see slowdown

July 27th, 2010 - 8:48 pm ICT by IANS  

Beijing, July 27 (IANS) China’s central bank said Tuesday the country’s economic growth may witness a slowdown.
Current economic development has revealed signs of a slowdown in the country’s growth, though the economic fundamentals remain strong, the People’s Bank of China (PBOC) said in a report.

However, the PBOC report said the chance for a “double dip” is seen as slim, Xinhua reported.

PBOC made this judgment based upon the purchasing managers’ index for the country’s manufacturing sector remaining above the boom-bust line of 50 percent, although the pace of the increase has decelerated.

Further, the European sovereign debt crisis is not expected to have a large impact on China’s economy, it said.

China’s gross domestic product (GDP) increased 10.3 percent year on year in the second quarter of this year, slower than the 11.9 percent growth in the first quarter and 10.7 percent increase in the last quarter of 2009.

The PBOC report said the current slowdown in China’s GDP growth was a correction following the earlier excessive expansion and also a result of the government’s macro regulations that aimed at curbing steep property price increases, easing local government debt risks and avoiding possible inflation.

“It is good for rebalancing the economic structure and achieving a sustainable economic growth,” the report said.

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