China's GDP grew 8.7 per cent in 2009

China, the world's third-largest economy, has reported a GDP growth of 8.7 per cent in 2009, buoyed by a growth of 10.7 per cent in the fourth quarter last year, and could overtake Japan as the second largest economy in the world.

Beating the government's March target of 8 per cent for the year as well as analysts' forecast of a growth of only 5 per cent, China's GDP rose 8.7 per cent in 2009 to reach 33.53 trillion yuan or $4.90 trillion.

Releasing the figures today, the National Bureau of Statistics (NBS) also said that industrial production in December increased by 18.5 per cent and retail sales rose by 17.5 per cent, while the consumer price index grew by 1.9 per cent and producer price index by 1.7 per cent in December.

The annual growth rate of 8.7 per cent and 10.7 per cent in the last quarter looked impressive as the country had a growth rate of 6.2 per cent in the first quarter, 7.9 per cent in the second quarter and 9.1 per cent in the third quarter.

After a worse fourth quarter in 2008 due to the global financial crisis and a sluggish first quarter in 2009, China shook off the early depression and soon started recovering in the second and third quarter of last year.

Ma Jiantang, commissioner of the National Bureau of Statistics, gave the entire credit for the stupendous growth at a time when some Western nations are still struggling to recover, to government stimulus package of four trillion yuan ($586 billion) announced in November 2008, (See: China pumps $586 billion to bolster economy) much of which, was spent last year in infrastructure works that kept the economy ticking.