Growth slows to 8.5%

China's economy grew by 8.5% in the first quarter and will slow to 7.5% by the end of 2006, state media reported, citing a National Development and Reform Commission report. Restrictions on spending and lending for property development will bring the growth rate below the 8% mark, according to the report produced by the NDRC's research arm. Fixed-asset investment rose by 26.4% in the first three months year-on-year, the planning agency report said. The National Bureau of Statistics will announce official figures next week.