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Last Updated: Thursday, 25 October 2007, 06:54 GMT 07:54 UK
China sees growth slow to 11.5%
Yuan
Beijing is trying to encourage Chinese consumers to spend more.
China's economy grew at an annual pace of 11.5% in the three months to the end of September, official figures show.

The figure was ahead of economists' predictions but slightly slower than the 11.9% seen in the previous quarter.

China will soon overtake Germany to become the world's third-largest economy behind the US and Japan.

Beijing said the slowing growth was evidence that efforts to cool the supercharged economy were having the desired effect.

"Due to macro-economic controls, we have turned the economy from being an over-heating one to being one of speedy growth," said National Bureau of Statistics spokesman, Li Xiaochao.

Among its efforts to curb the pace of growth have been five interest rate increases in 2007 and limits on spending on factories and property.

There has also been a ban on building luxury villas and an upping of taxes on the export of steel and other energy-intensive products.

Uncertain outlook

Exports and construction have driven China's economy forward.

Beijing is trying to encourage Chinese consumers to spend more, and reduce the nation's reliance on exports.

Mr Li said that problems in the US credit market were unlikely to affect Chinese growth, but added that rising oil prices and the possibility of a global slowdown may hit the economy in the coming year.

Separate data showed that consumer prices in September were 6.2% higher than a year before - blamed largely on a shortage of pork and other food.

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