The worst might be over for China's economy even as growth in the first quarter slumped to its lowest rate in more than a decade. The world's third-largest economy expanded by 6.1 percent from a year earlier, down from 6.8 percent the previous quarter, the National Bureau of Statistics reported Thursday. But it said industrial activity, retail sales and bank lending improved. “The recovery has begun,” said Citigroup economist Ken Peng. “If we don't have any major mishaps, then this should be relatively sustainable.” Growth was the slowest since at least 1997 and possibly as early as 1992, according to analysts. Beijing has repeatedly revised historical data, making comparisons difficult. While the overall economy slowed, growth in industrial output jumped to 8.3 percent in March from 3.8 percent for the first two months of the year, said Li Xiaochao, a statistics bureau spokesman. Investment in factories and other fixed assets soared 28.6 percent, while consumer spending - a key part of the recovery plan - rose 15 percent. Premier Wen Jiabao, China's top economic official, said the figures showed the government's 4 trillion yuan ($586 billion) in stimulus spending was producing results and the economy was in “better than expected” shape, the official Xinhua News Agency reported. Beijing worries that mounting unemployment might fuel unrest, and its priority is creating jobs. The government's official growth target is 8 percent, which some analysts say is the minimum needed to create enough employment. Beijing's stimulus spending is aimed at reducing reliance on exports by boosting domestic consumption.
