China reported the slowest growth in government and corporate spending this year, the strongest indication so far that a government clampdown on investment is starting to bite.
Fixed-asset investment in towns and cities climbed 21.5 percent from a year earlier, slowing from 27.4 percent in July, Qiu Xiaohua, head of the statistics bureau, told reporters in Beijing. Expansion in the first eight months slowed to 29.1 percent from 30.5 percent through July, he said.
China has restricted land use, raised interest rates and told banks to curb lending to curtail an investment boom that threatens to leave the nation with idle factories and rising bad loans. Success in cooling spending may be short-lived unless China also allows currency gains to quicken to stem a record trade surplus that’s flooding the economy with cash, economist Paul Cavey said.[Full Text]
IMF said China’s GDP will increase 10% this year, the Wall Street Journal reported. Click here.
Authorities are intensifying economic policies to curb the fast-growing economy. Click here to read China May Cut Tax Rebates to Curb Exports.