Still praiseworthy performance

Slower growth is an indication of country's efforts to make structural adjustments and improve people's livelihoods

China's decelerating growth, the lowest since 1999, is clear evidence that China is bidding farewell to its decades-long double-digit economic growth and entering a period of medium-speed growth.

The 7.8 percent growth of last year was higher than market expectations and more than the 7.5 percent target set by the government in early 2012. The fourth-quarter growth of 7.9 percent, which brought to an end the downturn that had lasted for seven consecutive quarters, heralds an upward tendency in the months ahead.

For a fast-growing economy that is changing its economic model, the 7.8 percent growth was hard-won. The World Bank estimated the 2012 global economic growth at 2.3 percent, with developing countries expected to grow by 5.1 percent. The United States was expected to witness 2.2 percent growth, Japan 2 percent and Germany, which has been performing better than other European countries, 0.7 percent. Of the emerging economies, India was expected to achieve economic growth of less than 6 percent, Brazil less than 3 percent and South Africa less than 2.5 percent.

Despite being its lowest growth in 13 years, China's 7.8 percent growth year-on-year was still praiseworthy in the context of the harsh international economic environment and its ongoing efforts for structural adjustments, which have added difficulties to its struggling export sector. Such a growth margin also smashed rumors that China's economy was in difficulties.

Investment, exports and consumption all accelerated in the fourth quarter of last year, contributing to the country's full-year economic growth. In particular, consumption witnessed strong growth, achieving an actual rise in the fourth quarter of 15.2 percent year-on-year. The actual growth in consumption for the whole year was 12.1 percent, compared with 11.6 percent in 2011. Final consumption contributed 51.8 percent to China's economic growth in 2012, 1.4 percentage points higher than the 50.4 percent contributed by capital.