Chinese economy grew 11.5 percent between January and September 2007

November 14th, 2007 - 2:50 am ICT by admin  
The growth was driven by rapid expansion in investment and credit, while inflation pressure eased slightly, official figures showed.

Li Xiaochao, a spokesman of the National Bureau of Statistics, told a news conference in Beijing today that “The domestic economy is maintaining fast development.”

Consumer price index (CPI), a barometer of inflation, slowed down to 6.2 percent in September from an 11-year-high of 6.5 percent in August, putting the figure for the first nine months at 4.1 percent.

This number is far above the official target of 3 percent for 2007.

The rapid growth of the GDP, and credit and investment has increased pressure for further monetary tightening. The central bank has raised interest rates five times and bank reserve ratio eight times so far this year.

Last week, Central Bank Governor Zhou Xiaochuan pledged to take a more aggressive approach to prevent the economy from overheating.

Zhou pledged to use monetary tools to keep the economy on track, including interest rates and exchange rates, adjustments in bank reserve ratios, and open market operations.

On Wednesday, Premier Wen Jiabao, at a State Council executive meeting, called for continuous control on excessive fixed-assets investment, especially in industries with high energy consumption and pollutant discharges and those with excessive capacity, along with tightened supervision on credit granting by commercial banks.

The meeting demanded closer monitoring of markets to ensure sustained supply and good quality of products and prevent the consumer prices from growing too quickly. (ANI)

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