Sharp dive for China's economy

China's economic slump deepened in the final quarter of 2008 as the impact of the global financial crisis spread, according to data released yesterday, adding to the threat of more heavy job losses and possible unrest.

Economic growth in the three months through to December plunged to 6.8 per cent compared with a year earlier, the National Bureau of Statistics reported - down sharply from 9 per cent the previous quarter.

The government promised steps to ensure "a harmonious and stable society".