China's Economy Surges 9% in Q1

21 April 2005

The frenetic Chinese economy displays no signs of cooling.

Government figures show GDP rose by 9.5% in the January-March period, the same rate of growth as in the final quarter of 2004.

Domestic demand remains solid together with investment and trade. The figures have confounded analysts' forecasts that GDP would fall to around 8.9 percent compared to the same period last year.

China's National Bureau of Statistics says GDP for the quarter was yuan 3.14 trillion ($379bn, €29bn, £197bn) after adjustment for price changes.

It adds: "The overall economic trend remains good amid the macroeconomic adjustment." But the NBS points to bottlenecks in transportation and energy and raises concerns about agricultural growth.

Fixed-asset investment, China's benchmark measure of capital expenditure, rose 22.8% year-on-year in the first quarter to yuan 1.10 trillion. The bureau said the total size of investment remained "too large".

Data sourced from Wall Street Journal Online; additional content by WARC staff