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China growth picks up in third quarter
CHINA saw its rate of annual GDP growth pick up in the third quarter as a combination of breakneck investment and buoyant bank lending compensated for a slump in exports.
Growth accelerated to 8.9 per cent in the third quarter, from 7.9 per cent last quarter. The figures came a day after the government said recovery in the world’s third-largest economy had now been “consolidated”.
CLSA China Macro-Strategist Andy Rothman said growth was strong, but added a policy tightening was unlikely until the second half of 2010.
He said: “China has begun, however, to implement its ‘exit strategy’, which is a gradual reduction in the level of stimulus (credit and infrastructure spending) in response to rising private investment and consumption.”