Moderating economic data should not be a cause for alarm

Major economic data for August have moderated from the previous month, sparking concerns about further slowdown of China's economy. Such concerns may be somewhat reasonable, but considering the declining trend of major economies across the world, in large part due to rising trade protectionism, and the still-strong growth momentum of the Chinese economy, there is no reason to view China's economic prospects with pessimism.

Year-on-year growth rates of industrial output, fixed-asset investment and retail sales were all lower than in July, indicating the Chinese economy faces heavy growth headwinds. Yet the economic data are in line with the global cycle of easing growth.

No wonder economists widely believe the United States Federal Reserve will continue to cut interest rates to help the world's largest economy cope with the slowdown. In Europe, the European Central Bank introduced an aggressive stimulus package on Thursday, cutting its deposit rate - the first such reduction in more than three years - to a record low of minus 0.4 percent, and restarting its bond-buying plan as part of a quantitative easing program to boost growth.