By the standards of almost any economy, the 8.9 per cent annual growth rate China notched up in the fourth quarter last year would be a success. Yet the mood in Beijing yesterday was sombre as the government announced its lowest increase in gross domestic product in 10 quarters.

China entered 2011 with a growth rate of 9.7 per cent in the first quarter and a government focused on tackling inflation, but ended it with a full-year GDP increase of 9.2 per cent, the same rate as in crisis-hit 2009 – the lowest level since 2002.

At first glance, the slowdown – to 9.5 per cent in the second quarter, 9.1 per cent in the third and now 8.9 per cent in the fourth – is exactly Beijing’s target for last year, especially as annualised inflation peaked at 6.5 per cent in July and was down to 4.1 per cent by the end of December.