China's economy expands 8.9% in Q3

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China's economic growth is gaining speed in the third quarter, with Gross Domestic Product reaching 8.9 percent. The National Bureau of Statistics told a news conference Thursday morning that China will no doubt achieve the government's growth target of 8 percent this year.

China's economic rebound is consolidated with strong third Quarter GDP growth of 8.9 percent. The quickening pace of economic growth is expected to continue in the fourth quarter, and secure the target of 8 percent for the whole year.

Li Xiaochao, NBS Spokesman said "With the implementation of economic stimulus package, domestic GDP grew 7.7 percent in the first three quarters. It laid a solid foundation to achieve 8 percent growth target this year. Judging from the current economic status, and the economic growth of 6.8% in the fourth quarter last year, we can say with certainty that achieving 8 percent GDP growth this year is completely assured. "

Other figures also point to a strong recovery. In the first three quarter, agricultural production is stable; the summer grain harvest grew for 6 consecutive years. Industrial profits declined slower, with output of those above designated size grew 8.7 percent. Fixed asset investment jumped over 33 percent, and retail sales grew 15 percent. The Consumer Price Index dipped 1.1 percent, and the Producer Price Index dropped 6.5 percent. Although still in negative territory, the decline of both figures are narrowing. Foreign trade volume dropped more slowly, at 20.9 percent, lifted by the recovering global demand. People's disposable income is rising, urban residents' income per capita grew 9.3 percent, while that of rural residents grew 8.5 percent. The money supply is growing rapidly. Outstanding RMB loans hit 39 trillion yuan, 34 percent higher than a year ago.

Li Xiaochao said "We will continue to implement proactive fiscal policy and moderately easy monetary policy."

The NBS spokesman says China presently faces no problem with inflation. But as the CPI and PPI are both moving upward, the government should be on alert of looming inflation expectation as the economy continues to rebound.