April 15th, 2011
Econintersect: The Financial Times has reported that China GDP rose by 9.7% (annual rate) in the first quarter of 2011. This was little changed from the fourth quarter 2010 GDP growth rate of 9.8%. The expectation, according to Bloomberg, was for a 9.4% number. The strong number is a surprise because China has been trying to tighten liquidity for the past six months to try to control inflation and keep economc growth within lower bounds. Follow up:
Follow up:The government also announced that inflation had risen again in March, to a 5.4% increase over March 2010. This indicates continuing acceleration of inflation because the February increase had been 10% less, at 4.9% year-over-year.
From the Financial Times:
Statements from China's statistics bureau indicated the government believes that the anti-inflation efforts are starting to take effect.