BEIJING -- China's rapid growth continued to slow in the second quarter as exports eased, but the nation's expansion still appears strong enough -- and inflation high enough -- for the government to refrain from employing new stimulus measures.
Gross domestic product expanded 10.1% from the same period last year, the National Bureau of Statistics said Thursday, slowing from the first quarter's 10.6% increase and the 11.9% gain for all of last year. The second-quarter slowdown was widely expected, given the combination of a weakening global economy, curbs on domestic bank lending, and the disruption caused by May's massive earthquake in Sichuan province.
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This year's slowdown has also made long-discussed structural reforms to the economy seem more urgent. With China's growth driven largely by exports and corporate investment, many economists advise doing more to encourage consumer spending. "This would put China's economic development on a more sustainable path," says Mei Jianping, a professor at the Cheung Kong Graduate School of Business in Beijing. Such changes, if they arrive quickly enough, could help China endure a more severe slowdown in the U.S. and European economies.
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