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.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.