China's economy slowed down for a fourth straight quarter as inflation eased in June, official figures showed on Thursday, giving more ammunition to advocates for a looser monetary policy.
The Gross Domestic Product (GDP) grew 10.1 percent in the second quarter after rising 10.6 percent in the first three months, said Li Xiaochao, spokesman for the National Bureau of Statistics at a press conference in Beijing. China's economic growth has been on a steady decline since peaking in the second quarter of 2007.
NBS chief economist Yao Jingyuan said the double-digit GDP growth indicated China's economy was still growing at a steady and relatively fast pace.
"The cooling of GDP growth indicated the government's macro-economic policy to prevent the economy from going overheated has paid off," said Yao. The slowing world economy and weaker demand on international markets also adversely affected the Chinese economy.
Another widely watched indicator, the Consumer Price Index (CPI) -- an important measure of inflation, moderated to 7.1 percent in June after rising 7.7 percent in the previous month thanks to easing food prices.
The combination of economic slowdown and easing inflation may give rise to louder calls for an ease in the monetary policy.
Analysts said that the tight monetary policy put in place at the end of last year has brought about great difficulties for many firms, especially private ones. Thousands of small and medium enterprises have gone bankrupt in the coastal areas as they could hardly get loans from banks, reports said. Fast appreciating yuan value, rising cost of labor and raw materials are also key reasons for the situation.
As the world's largest developing country, China needs fast economic development to maximize employment.
The Gross Domestic Product (GDP) grew 10.1 percent in the second quarter after rising 10.6 percent in the first three months, said Li Xiaochao, spokesman for the National Bureau of Statistics at a press conference in Beijing. China's economic growth has been on a steady decline since peaking in the second quarter of 2007.
NBS chief economist Yao Jingyuan said the double-digit GDP growth indicated China's economy was still growing at a steady and relatively fast pace.
"The cooling of GDP growth indicated the government's macro-economic policy to prevent the economy from going overheated has paid off," said Yao. The slowing world economy and weaker demand on international markets also adversely affected the Chinese economy.
Another widely watched indicator, the Consumer Price Index (CPI) -- an important measure of inflation, moderated to 7.1 percent in June after rising 7.7 percent in the previous month thanks to easing food prices.
The combination of economic slowdown and easing inflation may give rise to louder calls for an ease in the monetary policy.
Analysts said that the tight monetary policy put in place at the end of last year has brought about great difficulties for many firms, especially private ones. Thousands of small and medium enterprises have gone bankrupt in the coastal areas as they could hardly get loans from banks, reports said. Fast appreciating yuan value, rising cost of labor and raw materials are also key reasons for the situation.
As the world's largest developing country, China needs fast economic development to maximize employment.