» 07/13/2012 15:37 CHINA Economic growth reaches weakest pace in three years With growth slowing, the authorities need to address the problem politically, at the level of the one-party state that monopolises power and investments. Other data indicate that Beijing's injections of capital have temporarily, and artificially, stabilised the situation.
Beijing (AsiaNews/Agencies) - China's rate of economic growth is
slowing down because of the world's economic crisis but especially domestic
corruption and the one-party state. China's growth slowed for a sixth quarter
to the weakest pace in three years; decision-makers in Beijing must focus more on the matter.
Today's macroeconomic indicators show
that measures taken so far have started to stabilise the economy. Gross
domestic product expanded 7.6 per cent last quarter from a year earlier, just
under the first-half expansion of 7.8 per cent. In March, the target set was
7.5 per cent for this year, down from an 8 per cent goal in place since 2005.
However, this is largely a function
of direct aid to the banks and big government corporations to soften the
decline. Effects are likely to be temporary.
"I would say probably the worst is
over and we are going to see some stabilization and even improvement in growth
in the next quarter," Sun Junwei, China economist at HSBC in Beijing said. "It pretty much depends on
what will be the strength of further easing, but I think the chance is good
that (policy makers) are willing to respond to this growth slowdown."
GDP figures were not the only data
released today. Fixed-asset investment excluding rural households increased
20.4 per cent in the first six months from a year earlier. Retail sales rose
13.7 per cent last month, compared with the 13.8 in May. Industrial production
expanded 9.5 per cent in June, compared to a 9.8 per cent median estimate.