Economy defies curbs
19 July 2006
China's economy grew 10.9% in the first half of 2006 and 11.3% in the second quarter alone, the fastest official growth rate in 12 years, National Bureau of Statistics (NBS) figures released Tuesday showed. Growth was 10.3% in the first quarter. Beijing's growth target is 8%, but analysts told the South China Morning Post the economy would grow by more than 10% for the year, even if the government introduced more tightening moves. The authorities raised interest rates in April and ordered banks to set aside more money as reserves and tighten lending to specific sectors such as property. Analysts expect the government to hold off on further tightening measures until the impact of the last round of tightening could be assessed. Meanwhile, an NBS spokesperson ruled out another one-off revaluation of the yuan and warned speculators not to place "huge bets" on faster appreciation of the currency.
