Chinese growth slows

Chinese economic growth slowed to 9.6% in the third quarter, according to preliminary estimates published by the National Bureau of Statistics of China.

Economic growth has now fallen to single digits, following growth rates of 10.3% in the second quarter and 11.9% in the first quarter.

China’s GDP was Rmb 26,866 billion (£2,563 billion), a year-on-year increase of 10.6%. Although quarter-on-quarter growth has slowed down, growth is still 2.5 percentage points higher than in the same period last year.

In a statement, the government says that China has faced a complicated and volatile domestic and international environment and various “grand challenges”. (article continues below)

On Tuesday, China unexpectedly raised its interest rates as its economy shows signs of overheating. Inflationary pressures, exacerbated by America’s intention to start a second round of quantitative easing, have also intensified.