China said today its economy grew an above target 7.9 per cent in the first nine months of this year.
That pace, and the 8.1 per cent clip reached in the third quarter, beats the official target of seven per cent for 2002 and tops the latest State Statistical Bureau estimate of full-year growth of around 7.8 per cent.
"The national economy has maintained fast and healthy growth and momentum and the overall situation is better than expected," the bureau said in a statement.
But the economic black spot was a difficult battle against persistent deflation which can harm growth by cutting into corporate profits and forcing firms to scale back investments.
China's consumer price index, which measures a basket of goods and services from food to school fees, fell 0.8 per cent in the first nine months from the same period of last year, the statement said.
Prices fell 0.7 per cent in September, unchanged from August but easing from a 0.9 per cent drop in July.
Analysts have debated the source of China's deflation, some saying it stems from industrial overcapacity and others arguing it is tied more to weak demand as consumers, fearing unemployment amid wrenching economic changes, save for a rainy day.
Retail sales rose 8.7 percent in the first nine months of the year, behind a target of nine per cent, and climbed 9.1 per cent in September, the bureau said.
Fixed asset investment, which covers spending on things like roads, property and power grids, rose 21.8 per cent in the January to September period and 24.7 per cent in September alone, the bureau said.