Chinese economy booms in first three months of 2010
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
China’s economy continued its torrid expansion in the first three months of the year, growing 11.9% compared with the same period a year ago, China’s National Bureau of Statistics announced Thursday.
Analysts say the robust growth could portend government policies to control inflation and an overheated real estate market. Measures such as interest-rate hikes and a small appreciation of the currency could be in store.
“The acceleration in growth argues for further policy tightening,” said Ben Simpfendorfer, chief China economist for the Royal Bank of Scotland in Hong Kong.
China’s consumer price index fell to 2.4% year on year in March compared with 2.7% in February. Inflation traditionally decelerates the month after Chinese New Year because the price of food drops on lower demand.
The producer price index rose to 5.9% year on year in March compared with 4.9% the previous period – a reflection of the rising commodity prices and China’s continued appetite for raw-materials fuel development.
Officials said policymakers would now have to finesse credit expansion and stimulus measures to ensure sustained growth.
‘With the implementation of the stimulus package to combat the global financial crisis, the Chinese economy achieved a good start this year as the recovery momentum continues to consolidate, laying a solid foundation to meet” growth targets, said Li Xiaochao, a spokesman for the statistics bureau.
He added, “We will also make policy setting more flexible and targeted according to developments.”
-- David Pierson
