Guangdong province saw economic growth of 9.2 per cent in the first three quarters of the year, down from the 9.6 per cent gross domestic product increase in the first half. However, the province's statistics bureau also reported inflationary price growth last month for the first time in two years, indicating Guangdong was overcoming sluggish demand seen since 1997. The province's consumer price index, which was in decline for 18 consecutive months, increased by 1.6 per cent, said Pu Xinmin, director of the Guangdong statistics bureau. Guangdong's retail price index, which was in negative territory for 25 consecutive months, also increased by 1.6 per cent, he said. Mr Pu attributed the price rebound to recent natural disasters. For example, the typhoon that struck the province last month led to a 29.7 per cent spike in the price of vegetables in September over August. Vegetables prices, year-on-year, were up 18.5 per cent. Computer and computer component prices, too, increased, due to the earthquake in Taiwan. Mr Pu believed the province would achieve 9 per cent economic growth for the year, surpassing the target of 8.5 per cent. The province's total GDP for the first nine months reached 586.29 billion yuan (about HK$545.2 billion), with growth led by investment in fixed assets, which reached 127.69 billion yuan, representing year-on-year growth of 18.7 per cent. Consumer retail sales reached 261.53 billion yuan, a year-on-year increase of 9.3 per cent, or an inflation adjusted rise of 13.4 per cent. The statistics bureau said rural consumption outpaced urban and township consumption, due to lower electricity prices and salary increases. Guangdong's state-owned enterprises continued to lose ground, with 1,852 firms wracking-up losses during the first eight months of the year, representing 58.8 per cent of the province's total. The number of loss-making companies was also 7.2 per cent higher than a year earlier. However, the province's enterprises and non-state industrial companies with annual sales income of more than five million yuan achieved industrial output value of 183.61 billion yuan, representing year-on-year growth of 13.2 per cent. The output to sales ratio reached 96.5 per cent. The statistics bureau also reported realised foreign direct investment during the first eight months reached US$8.3 billion, a 13.9 per cent year-on-year decline. ECONOMY