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China Blames Crisis in Latest GDP Slide

Growth at solid 9%, but down for 5th quarter in row as exports shrink

By Clay Dillow, Newser Staff

Posted Oct 21, 2008 1:27 PM CDT

(Newser) – The dragon isn’t sick yet, but it’s definitely catching cold: China’s gross domestic product grew by an enviable 9% in the third quarter, but still failed to match last quarter’s result of 10.1%, the Guardian reports. The data mark the first time China’s GDP has dipped below 10% in almost 3 years, and the fifth consecutive quarter GDP has slowed.

China is under international pressure to revalue its currency to make exports more expensive, as well as from various health scares related to flawed manufacturing and inspection processes. It’s also feeling the impact of the credit freeze that has trimmed spending worldwide. In the past nine months, exports contributed just 1.2% to GDP growth, down from 2.4% over the first nine months of 2007.

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Though the ever-changing Shanghai skyline is a sign of China's prosperity, GDP growth sank below 10% in the most recent quarter for the first time in three years. (AP Photo)

Exports, once the jewel in China's crown, are falling amid decreased spending power elsewhere and safety problems with toys, dairy and other items. (AP Photo)

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There are more uncertain and volatile factors in the international economic climate. All these factors have started to release their negative impact on China's economy.
- Li Xiaochao, China's National Bureau of Statistics

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China Blames Crisis in Latest GDP Slide