Chinese economy faces more stress

BEIJING, Nov. 26 (UPI) -- The Chinese economy, already hit by slowing export and property investment growth, may see further deterioration, latest data showed.

Vice Premier Zhang Dejiang says the current global situation is having a bigger negative impact on the economy, Xinhua news agency reported.

The Xinhua report noted China's GDP growth rate fell to 9 percent in the third quarter from 10.4 percent in the first half because of slower growth in exports and property investment. It said October data also showed the economic situation is further worsening.

The government, concerned about the impact of a slowdown on the jobless rate, already has announced a $586 billion package to stimulate domestic demand.

Zhang, after a recent inspection of some of the industrial sectors, called for speeding up efforts to cut production costs and improving corporate earnings.

Earlier this week, the World Bank cut its 2009 estimate for China's growth to 7.5 percent from its earlier estimate of 9.2 percent previously.

"The global economy is facing great difficulties. The slowdown in the United States, Europe and Japan should affect developing economies, including China," David Dollar, the bank's country director for China, was quoted as saying.