BEIJING (AFP) - The slowdown in Chinas economy will stabilise and there is little risk of a double dip recession, the central bank said Tuesday, amid fears the Asian giant was running out of steam. The worlds third largest economy grew 10.3 percent in the second quarter, compared with 11.9 percent in the first three months, as government tightening measures started to bite, the Peoples Bank of China (PBoC) said in a statement on its website. But the economic slowdown will level off and is in fact beneficial for the restructuring of the countrys economy and ensuring sustainable growth, it said, adding: Chinas economic fundamentals are still very good. It is likely the economic slowdown will stabilise in the future, but the chance of a double dip is not likely, the central bank said. Policymakers will stand by current macroeconomic policies, such as those aimed at cooling the property market and reining in rampant bank lending, because the economy is moving in the expected direction, it added. The bank said the European financial crisis would have an impact on Chinas exports in the near-term, given the region is Chinas largest trading partner, but the effect on the overall economy would not be significant. Even though exports to Europe will weaken in the short term, there is low risk of the crisis having a serious impact on the Chinese economy, the PBoC said. The banks comments come after Premier Wen Jiabao said earlier this month that the slowdown in the second quarter was in line with expectations, but warned of economic difficulties ahead. So far this year our nations economy is continuing to develop in the direction set by our macroe-conomic controls, Wen said, according to a report on his governments website. The progress made has not come easy. Faced with the current situation, we must ... fully anticipate the difficulties and problems ahead and strengthen our awareness of the dangers.