0
BEIJING, Feb 25: Chinese economic growth slowed to 6.7 per cent in the fourth quarter of last year, state media said on Monday in what could be the first official release of the key economic figure.
The fourth-quarter growth rate — low by Chinese standards — was a reflection of the slowdown in global economic growth, the China Securities Journal reported, without giving a source for its data.
Some foreign analysts said they were surprised by the figure, since their calculations based on previously published government data suggested growth in the fourth quarter of only 6.3-6.4 per cent.
Economic growth posted a steady decline throughout last year, starting with 8.1 per cent growth in the first quarter, 7.7 per cent growth in the second quarter, and seven per cent in the third, the paper said.
China’s economy grew by 7.3 per cent for the full year of 2001, down from eight per cent in 2000, according to previously released government statistics.
Slowing exports to key markets such as the United States and Japan has been given as one of the main factors behind the decline in overall economic growth from 2000 to 2001.
China’s export growth slowed to 6.8 per cent in 2001 from 27.8 per cent in 2000, resulting in the nation’s lowest trade surplus since 1996.
However 2002 could mean an improvement in trade performance, as many foreign companies are moving production lines to China for export overseas.
For instance, Japanese companies are rapidly moving facilities to China, often aiming to export the finished products back to Japanese consumers, analysts said.
“The bad economy story in China is over,” said Andy Xie, chief economist at Morgan Stanley Dean Witter in Hong Kong. “It bottomed out in the fourth quarter.”
Chinese exports reached $21.7 billion in the first month of the year, up 29.2 per cent from the same month last year, resulting in a $2.7 billion trade surplus.
If exports continue to improve in the coming months, this year’s economic growth could reach 7.5 per cent, up from last year’s growth, Xie said.—AFP
