China's Economic Growth Slows Down

China's economic growth has hit five-year low and slowed to a single-digit rate in the first three quarters of this year amidst a global credit crunch.

The country's gross domestic product (GDP) by the end of September registered a year-on-year increase of 9.9%, but it was 2.3 percentage points lower than that in the same period of last year, according to the latest data released by the National Bureau of Statistic on Oct 20.

Prior to this, China had enjoyed five years of double-digit growth rate since 2003. Last year's GDP growth was 11.4%.

The Bureau spokesperson Li Xiaochao said that despite a slower growth rate, China's overall economic situation remained well as the government had taken measures to cushion fall outs from the US financial crisis and global economic uncertainties.

Weaker export demand had resulted a decline in industrial output. In the first three quarters of this year, the total output value by scale enterprises (with annual sale revenue exceeding 5 million yuan) was up 15.2% year-on-year, but that was 3.3 percentage points lower than that of last year's.

China's export value for the first nine months was up by 22.3%, or worth some USD1 trillion. However, that figure was 4.8 percentage points lower than the corresponding period last year. Moreover, the country's trade surplus decreased USD4.7billion to USD181billion.

In addition, money supply in the market too had slowed. By the end of September, the broad money (M2) supply was up 15.3% to 45.3 trillion yuan, but that was 3.2 percentage points lower than that of last year's.

Not all was gloom though, the agriculture sector saw an increase in grain output for five years in a roll. The year-on-year growth hit 2.6% for the first three quarters of this year, producing 120.41 million tons of summer grain.

Investment in fixed assets too recorded a year-on-year growth of 27%, or 1.3 percentage points higher than that of last year's, totalling 11.6 trillion yuan.

Meanwhile, consumer goods retail sales totaled some 7.78 trillion yuan, a year-on-year rise of 22%, or 6.1 percentage points higher than that of last year's.