Chinese Economy Slows Slightly in April-June Period

Posted July 13th, 2011 at 12:50 am (UTC-5)
Leave a comment

China’s economy grew at a slower pace in the second quarter of 2011, a reflection of the government’s efforts to cool the economy and control inflation.

The National Bureau of Statistics said Wednesday that China’s gross domestic product was up by 9.5 percent over the same period a year earlier. That was down from 9.7 percent growth in the previous three-month period, but was slightly higher than economists had forecast.

Chinese policymakers have taken a number of steps to lower inflation, which stood at 6.4 percent last month, driven in part by a spike in food prices. The central bank has imposed five interest rate hikes since last year in an effort to reduce the amount of money in the economy, which leads to high consumer prices.

Beijing hopes to reduce the inflation rate to four percent, fearing anything higher could erode the Communist Party’s grip on power and fuel social unrest.

In remarks published Tuesday, Premier Wen Jiabao said the government will work to see that its fight against inflation does not cause fluctuations in economic growth.

In other economic news Wednesday, the Bureau of Statistics said factory output rose 15 percent last month, while fixed-asset investment, which measures the government’s spending on infrastructure, rose 25.6 percent. Retail sales grew 17.7 percent in June.