China GDP gain hailed in climate of difficulty
By Wang Yanlin |
April 16, 2010, Friday
|
Print Edition
Print Edition
CHINA managed an annualized gross domestic product growth of 11.9 percent in the first quarter - the fastest pace in the past two years.
The result came amid a "complicated" economic environment, the National Bureau of Statistics said yesterday.
Although Li Xiaochao, a bureau spokesman, said the economy was running within a healthy development range, analysts pointed out that rising consumer prices, industrial production and investment hint at overheating risks.
"China's economic recovery has strengthened," Li said at a Beijing press conference.
"The first-quarter fast growth rate is derived from the effect of massive stimulus measures and a low comparative base last year.
"The growth pace is within a positive development scope and China will keep its macroeconomic policies stable, but more flexible, to deal with the complexities and uncertainties in the world economy."
Solid base
GDP in the first three months amounted to 8.06 trillion yuan (US$1.18 trillion).
The growth rate picked up from a gain of 10.7 percent in the fourth quarter of last year and laid a solid base for China to achieve its goal of an 8-percent 2010 GDP increase.
Investment contributed 6.9 percentage points to total GDP growth rate and consumption 6.9 percentage points but exports still dragged it down by 1.2 percentage points.
"Growth is strong but there are signs of overheating," said Stephen Green, chief economist at Standard Chartered Bank (China) Ltd.
"With stimulus measures already partly removed, the key is whether authorities can steer the economy onto a more sustainable growth path, or whether generalized inflation and an asset bubble will break out in the second half and trigger a bigger policy-induced slowdown for China next year."
On target
The consumer price index, the main gauge of inflation, rose 2.2 percent year on year in the January-March period, not far from the central government target of 3 percent for the whole year.
Industrial production accelerated 19.6 percent on an annual basis in the first three months, up 14.5 percentage points from the same period of last year, the bureau said.
Fixed-asset investment through March advanced 25.6 percent year on year to 3.5 trillion yuan.
Investment in property development surged 35.1 percent to 659.4 billion yuan, up 31 percentage points from the quarter of last year.
Retail sales in the first three months jumped 17.9 percent to 3.63 trillion yuan.
Urban residents' disposable first-quarter incomes edged up 9.8 percent to 5,308 yuan from 2009, while those in rural areas earned 1,814 yuan, up 11.8 percent on last year.
The result came amid a "complicated" economic environment, the National Bureau of Statistics said yesterday.
Although Li Xiaochao, a bureau spokesman, said the economy was running within a healthy development range, analysts pointed out that rising consumer prices, industrial production and investment hint at overheating risks.
"China's economic recovery has strengthened," Li said at a Beijing press conference.
"The first-quarter fast growth rate is derived from the effect of massive stimulus measures and a low comparative base last year.
"The growth pace is within a positive development scope and China will keep its macroeconomic policies stable, but more flexible, to deal with the complexities and uncertainties in the world economy."
Solid base
GDP in the first three months amounted to 8.06 trillion yuan (US$1.18 trillion).
The growth rate picked up from a gain of 10.7 percent in the fourth quarter of last year and laid a solid base for China to achieve its goal of an 8-percent 2010 GDP increase.
Investment contributed 6.9 percentage points to total GDP growth rate and consumption 6.9 percentage points but exports still dragged it down by 1.2 percentage points.
"Growth is strong but there are signs of overheating," said Stephen Green, chief economist at Standard Chartered Bank (China) Ltd.
"With stimulus measures already partly removed, the key is whether authorities can steer the economy onto a more sustainable growth path, or whether generalized inflation and an asset bubble will break out in the second half and trigger a bigger policy-induced slowdown for China next year."
On target
The consumer price index, the main gauge of inflation, rose 2.2 percent year on year in the January-March period, not far from the central government target of 3 percent for the whole year.
Industrial production accelerated 19.6 percent on an annual basis in the first three months, up 14.5 percentage points from the same period of last year, the bureau said.
Fixed-asset investment through March advanced 25.6 percent year on year to 3.5 trillion yuan.
Investment in property development surged 35.1 percent to 659.4 billion yuan, up 31 percentage points from the quarter of last year.
Retail sales in the first three months jumped 17.9 percent to 3.63 trillion yuan.
Urban residents' disposable first-quarter incomes edged up 9.8 percent to 5,308 yuan from 2009, while those in rural areas earned 1,814 yuan, up 11.8 percent on last year.
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