China's economy estimated to grow 12 per cent in first quarter
29 Mar 2010
China's economic growth is expected to reach 12 per cent in the first quarter of 2010, according to Yu Bin, head of macroeconomic research at the State Council Development Research Center, in view of China's strong industrial output growth last month.
Yu Bin, told the Shanghai Securities Journal that the Chinese economy was expected to slow to a certain extent in the second quarter and thereafter, as China's central government would be required to take more effective measures to control inflation and curb bank lending.
The paper also quoted Fan Jianping, a senior economist with the State Information Center, a think-tank affiliated with the National Development and Reform Commission, who also expects 12 per cent growth in the first quarter followed by growth to slow down to 10.8 per cent in the second quarter and 9 per cent or less in the third and fourth quarters.
China's economy expanded 8.7 per cent in 2009, slowed by the global economic meltdown.
Last week, the World Bank raised China's economic growth forecast from 8.7 per cent to 9.5 per cent, citing robust growth in exports, real estate and strong consumer spending.(See : European exports to China for 2009 up at record high)
China's January industrial output data surged 46 per cent year on year and in February was up 17.5 per cent.
For the two months, combined industrial output data showed strong 20.7 per cent year-on-year growth, fed by the stimulus package implemented in late 2008. In the last quarter of 2009 the gross domestic product expanded by 10.
In spite of the strong growth recorded this year, China's industry minister, Li Yizhong, said that this growth rate would not continue.
