The pace of economic growth in China slowed in the third quarter while inflation in the country edged higher which suggests the world’s second-largest economy is far from overheating.
Growth dipped to 9.6 percent from a year earlier, down from 10.3 percent in the second quarter and 11.9 percent in the first three months of the year.
The reasons were explained by Sheng Laiyun, spokesman for China’s National Bureau of Statistics: “The moderate slowdown of economic growth is mainly because last year’s figure was relatively high, and a result of the macro economic control measures we’ve taken this year.”
Annual inflation rose in September to 3.6 percent, reaching a 23-month high, but excluding food prices, inflation slowed.
China rebounded last year from the global financial crisis thanks to Beijing’s monetary and fiscal stimulus measures which are now being gradually withdrawn.
The government – which this week raised interest rates – is now trying to reform the economy, shifting it away from high-octane investment growth and reliance on exports and towards a greater focus on domestic consumption.