China’s latest growth numbers were met with dismay by investors – equity markets plummeted across Asia on Thursday – many of whom believe that Beijing is losing control of an overheating economy.

But are these concerns fully justified? A closer look at the data suggests not only that the Chinese economy may be beginning to cool down, but that measures taken by authorities to rein in inflation are starting – and will continue – to pay dividends.

The data show that China’s gross domestic product expanded at 9.8 per cent in the fourth quarter compared to a year earlier. Comparing this figure to estimates of the economy’s underlying trend of 6-7 per cent, many analysts have concluded that current growth levels are excessive and inflation is set to continue rising.