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SHANGHAI: The Chinese economy is showing resilience despite slowing global growth and the recent string of natural disasters.
Growth for the second quarter may have slowed from the previous three months, but it still held at double digit at a 10.1 per cent clip, which analysts said is still strong.
Li Xiaochao, a National Bureau of Statistics China spokesperson, said: "We should see that the speed of the slowed economic growth is still relatively high. The growth of the second quarter is 10.1, which is 0.3 per cent higher than the average growth of the past 30 years after China opened up."
Despite latest figures showing a dip, China is still expected to post double digit growth for the sixth straight year as the country continues industrialization and urbanization plans.
However, economists warn that inflationary pressures will dog the economy. China's consumer price index, the main gauge of inflation, rose 7.9 per cent in the first half of this year, with food prices soaring 20.4 per cent.
Fighting rising costs has become a key concern. Analysts caution that the worst-affected would be the small and medium-sized enterprises, and some argue that the government should tweak its monetary policy to help them.
Lian Ping, Chief Economist, Bank of Communications, said: "All these years, developed countries have enjoyed low priced labour-intensive products from China. China's labour is cheap.
"It's about time we made adjustments for companies to face the appreciation. It's necessary for them to make certain adjustments. Global consumers can afford the mark up of prices."
The Chinese economy grew 11.9 per cent for the whole of 2007. It is expected to moderate this year, to just above 10 per cent. - CNA/vm
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