China Government Think Tank Sees 2nd-Half GDP Growth Slowing - Report

BEIJING (Dow Jones)--China's gross domestic product growth is likely to fall to about 9.2% in the third quarter and to 8%-8.5% in the fourth quarter, but the government isn't likely to change its economic policies in the third quarter, a director at a government think tank said in a question-and-answer article in the overseas edition of the People's Daily on Monday.

"There is no need to be overly concerned by the rate of economic expansion...It should be acceptable that economic growth will slow slightly in the second half from the first half, or next year's growth slows slightly from this year, but remains at least 8%," said Fan Jianping, director of the economic forecast department of the State Information Center, a think tank under the National Development and Reform Commission.

The forecasts, which are in line with market expectations, represent a continuing slowdown from the second quarter's growth rate of 10.3% and the first quarter's 11.9% due to the gradual winding down of China's stimulus spending and the effect of lending curbs and property market tightening.

Beijing has said the economic slowdown is within expectations and is good for the economy's sustainable and long-term development.

China's GDP growth will likely begin to rebound after the second quarter next year as government investment projects in the 12th Five-Year Plan, spanning 2011 to 2015, kick in, Fan said. 

Source: WSJ