China GDP Grows at Slowest Rate Since 2009

Posted January 17th, 2012 at 2:05 am (UTC-5)
Leave a comment

China's economy grew at its slowest pace in two-and-a-half years during the final quarter of 2011, as Beijing fought chronically high inflation and faced weakened demand for its exports.

The growth of China's gross domestic product in the fourth quarter slowed to 8.9 percent – the slowest expansion since the second quarter of 2009. But the figure still exceeded many analysts' expectations, suggesting a soft landing for the world's second largest economy.

Overall, China's economy grew 9.2 percent in 2011. That is down from the previous year's figure of 10.4 percent. While growth is slowing, many experts say that China's economy is showing surprising resiliency to the global economic downturn.

National Statistics Bureau Chairman Ma Jiantang said the slowdown was in line with government plans to cool China's overheated economy. But he also warned that growth was likely to slow further, as Beijing prepared for “unexpected situations” in 2012.

“All the circumstances, including the domestic and international environment, increase many uncertainties in China's economic operation in 2012.”

Many analysts also predict that China's economy will continue to slow during the first six months of 2012.

But some say the stronger than expected fourth quarter growth may give Chinese policy makers the ability to delay any further moves to ease monetary policy.