China\\\'s economy to \\\'hit 5-year low in Q3\\\'

BEIJING, Oct 11 (Xinhua): Investors are biting their nails as they anticipate the release of China's economic data on Monday, which may show the world's second-largest economy grows at its weakest pace in more than five years.
Wang Tao, chief China economist with UBS, expected the country's third-quarter GDP growth to slide to 7.1 per cent, from 7.5 per cent in the second quarter and 7.4 per cent in the first quarter. It may be the lowest pace of increase since the first quarter of 2009, when the global financial crisis brought growth down to 6.6 per cent.
China is scheduled to release its major September economic indicators next week, along with its third-quarter GDP growth.
Wang forecasts improving export and import growth for September, which is likely to register a trade surplus of 37 billion US dollars, she said in a report to clients.
Analysts expected the country's inflation to remain contained, with consumer price index seen coming in under 2 per cent for September, in line with weak demand and continued industrial oversupply.
Lian Ping, chief economist with the Bank of Communications, said he expects third-quarter GDP growth at 7.3 per cent, with a sharp decline in property investment pulling down the country's total investment and weighing on the economy.
To stabilise growth, Wang said the government will step up easing measures in the last quarter. They may include lowering down payment ratios for first home-buyers and accelerating reforms to boost growth momentum. ' HSBC also believes China's policymakers will step up fiscal spending and targeted quantitative easing in the coming period to stabilise growth.