China Q3 GDP growth falls to 9.0% on gloomy outlook

Reuters reported that China's growth rate slowed to 9.0% in the Q3, dragged down by the global credit crisis and a weak property sector, leaving the economy on course for its first year of single digit expansion since 2002.

According to the report, the fall in annual gross domestic product growth, from 10.1% in the Q2, confirmed that China cannot decouple from worldwide trends and reinforced expectations that the government will soon ease monetary and fiscal policy. Annual growth in the first 9th months was 9.9 %, well down from 11.9 % in all of 2007.

Mr Tao Wang, an economist at UBS Securities in Beijing said that "I'm looking for slower growth in the Q4 because that's when I think the external side will start to show a more negative impact. He said that Q3 growth of 9.7 % and the outcome disappointed the Shanghai stock market, which fell 0.73 % in the morning session despite strength elsewhere across Asia.¡±

Mr Chen Jinren, an analyst at Huatai Securities said that "A gloomy outlook lies ahead after the Q3 and concerns about the slowdown now outweigh concerns about inflation."

It is not possible to pinpoint when gross domestic product last grew more slowly because the NBS does not publish updated quarterly data when it revises its annual GDP figures. Some economists estimate there was at least one weaker quarter in 2004. However, the last time full year growth failed to reach double digits was in 2002, when it was 9.1 %.

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