BEIJING - A government cap on new vehicle purchases led to a slight reduction in the capital's economic growth, it has been revealed.

"Beijing's economy grew 8 percent in the first half of this year, putting it last in the national rankings," said Yao Jingyuan, former chief economist at the National Bureau of Statistics. "The limit on car purchases cost the city an extra 1 percent at least."

He was speaking at the seventh annual international forum on China's auto industry development, held Friday to Sunday in Tianjin.

In his report, which was delivered during a roundtable meeting on Sept 2, Yao said the real estate slump and the relocation of several companies, including Shougang Group, has also affected growth.

The so-called license plate lottery was introduced as part of efforts by authorities to curb congestion and improve air quality. Every month, first-time buyers must enter a draw to win one of 17,600 licenses up for grabs. A record 653,113 people competed in August.

Despite hitting economic growth, Du Shaozhong, deputy director of the Beijing Environmental Protection Bureau, insisted the limit on car purchases has had a positive effect on the environment