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China: no need for economic tightening
(Agencies)
Updated: 2005-07-16 09:32

BEIJING (Reuters) - China should not issue new economic tightening measures, a top statistical bureau official said on Friday, state media reported, underscoring views that growth in the world's seventh-largest economy may be slowing.

"We should stabilize macroeconomic control policies, and in the near term the government should not issue new tightening control measures," Qiu Xiaohua, vice head of the State Statistical Bureau said in a speech to the economic committee of China's National People's Congress.

China's economy expanded a faster-than-expected 9.5 percent in the year through the first quarter, keeping pressure on Beijing to rein in growth.

But data on industrial ouput and inflation point to a cooling economy and many economists expect growth to slow to less than 9 percent for the full year.

Qiu also said China's economic performance for the first half was "basically stable" and that the economy for the whole year should grow steadily.

But despite the upbeat report, Qiu said China should still be concerned about its growing trade surplus and rising capital inflows and alert to the fact a global economic slowdown could affect its export growth.

China generated a trade surplus of $39.65 billion for the first half of the year, driven by the country's surging exports and government restraints on investment that has been slowing imports.



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