China’s rapid growth contained, NBS
Nov. 26 – China’s National Bureau of Statistics said government policies are restraining overly rapid economic growth, and no sharp adjustments are needed.
The assessment meshes with recent comments from China’s central bank officials and advisers, although they have left open the possibility of more belt-tightening measures if needed.
“Overheating economic growth is being put under control with the decline in the growth of major economic indicators,” said statistics bureau spokesman Li Xiaochao, according to Xinhua News Agency.
He cited improvements in data for urban fixed-asset investments, industrial production, money supply and corporate profits as reasons that no drastic policy changes are needed.
A week ago, central bank chief Zhou Xiaochuan said economic indicators suggested overheating was on the decline but added it was too early to declare victory.
“The People’s Bank of China can never rule out taking new measures,” he told Reuters at a global bankers’ meeting.
Fan Gang, an adviser to the bank, has said the central bank may need to raise interest rates again to keep investment in check even though it might face opposition in doing so.
Since late April, the central bank has raised interest rates twice and banks’ reserve requirements three times.
A survey of economists by Reuters this month shows most expect growth in China’s gross domestic product will tip into single digits in 2007 for the first time in five years, ebbing to 9.5 percent from a projected 10.6 percent this year.