China GDP growth at 7.3% in 3rd quarter
October 21, 2014, 5:44 am

A farmer airs chili in a yard in Chenkan Ancient Village of Huangshan City, east China’s Anhui Province, Oct. 16, 2014 [Xinhua]

Though the GDP growth in July-September marked the slowest quarterly growth since the first quarter of 2009, it was still within the range set by policymakers in Beijing.

On a quarterly basis, the GDP in the third quarter was 1.9 per cent larger than that in the April-June period, according to NBS.

For the first nine months, the GDP rose 7.4 per cent year on year to reach 42 trillion yuan ($6.84 trillion).

Gerry Rice, spokesperson of the International Monetary Fund (IMF), said in September this year the IMF has “recommended the (Chinese) authorities could accept a range of 6. 5 to 7 per cent for growth target in 2015.”

A slower economic growth in China in the near term is a price worthwhile for a more sustainable growth and higher income in the future, said Rice.

China’s economy has had a rocky spell this year. Growth sank to an 18-month low of 7.4 per cent in the first quarter before edging up to 7.5 per cent between April and June.

Earlier this year, China has rejected a World Bank report that suggests it might pass the United States this year to become the biggest economy measured by its currency’s purchasing power.

The IMF forecasts China’s economic growth this year at 7.5 per cent, nearly triple the 2.8 per cent outlook for the United States.

“Even when the Chinese economy is finally coronated as No.1, all that GDP will be spread pretty thin around more than a billion people. On a per-capita basis, China is still No.99 in the world. In any case, China will be the world’s largest economy sooner or later, but do ordinary Chinese people really care? At the end of the day, it is the yuan in their pocket that really matters,” said an editorial in China’s state-run Xinhua in September.

“This does not change China’s status as a middle-income, developing country. More importantly, China remains dogged by a host of problems: overcapacity, financial risk, lukewarm manufacturing, lack of global brands and innovative capabilities,” it added.

TBP and Agencies