China suffers economic slowdown

The latest Chinese government figures show that the gross domestic product (GDP) grew by 8.9% in the three months to the end of December 2011, from a year earlier. This means growth is down from 9.1% in the previous quarter.

The statistics bureau data showed that growth for the full year was 9.2%, down from 10.3% in 2010. Analysts said they expect the economy to slow further this year.

China has previously been one of the fastest-growing economies in recent years.

However, stimulus measures implemented by the government have created the risk of asset bubbles developing and China is looking at ways of gently slowing growth to what it sees as more sustainable levels.

These measures have included a curb on lending to prevent creating a bubble in the property and investment markets, and tightened monetary supply.

Tuesday's data showed that real estate investment in China rose 27.9% in 2011, down from an annual growth rate of 29.9% between January and November, the National Bureau of Statistics said.

However, it is not just domestic factors influencing growth. Another reason for the slide is the slowdown in exports because of weakening demand from Europe and the US.

Data showed output from factories and workshops in the country rose 13.9% for all of 2011, which is a slower pace than in 2010.

Some analysts are now calling for China to alter its growth strategy towards more sustainable levels, even if it is slower.

Chinese authorities have been trying to boost levels of domestic consumption to reduce the country's reliance on exports.