The New Nation - Internet Edition

AFP, Shanghai

China's economic growth is likely to maintain a feverish pace of more than 11 percent in the fourth quarter, state media reported today (Monday), citing a government think tank. The economy is expected to expand 11.2 percent in the last three months of 2007, slowing only slightly from 11.5 percent in the previous quarter, the China Securities Journal reported. The consumer inflation rate is likely to grow 5.9 percent in the fourth quarter, compared with 4.1 percent for the first nine months of the year, the State Information Centre, a think tank, said according to the paper.

"Since economic growth remains at high levels, the basic direction of macroeconomic policy should continue to focus on preventing overheating," the report said. China has raised interest rates five times so far this year and over the weekend announced this year's ninth hike in the reserve ratio requirement for banking institutes.

or the money banks need to set aside with the central bank.

The report forecast gross domestic product will grow 11.4 percent for the full year of 2007, while the consumer price index will rise 4.6 percent this year, compared with only 1.5 percent in 2006.