China says its economy grew 11.1 percent in the first half, indicating rapid expansion slowing

Published November 17, 2014

BEIJING (AP) — China's rapid growth is slowing as the impact of its massive stimulus eases and Beijing clamps down on a credit boom.

The world's third-largest economy grew by 11.1 percent in the first half of the year, the government announced Thursday. That was below the first quarter's explosive 11.9 percent rate.

The government is clamping down on credit to cool surging housing prices and avert a possible rise in bad debt for China's state-owned banks after they lent record amounts last year in support of Beijing's stimulus.

A slowdown in Chinese growth could have global implications if it cuts into demand for imported iron ore, industrial components and other foreign goods.

The latest growth figures put China on the verge of overtaking Japan as the second-largest economy.

Consumer inflation in June eased to 2.9 percent from May's 3.1 percent, which broke through the government's official target for the year of 3 percent, according to the National Bureau of Statistics.

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