Chinese Growth to Stay Strong

11 May 2006

China's economy continues to boom at a faster rate than the targets set by the country's leaders.

Forecasts by the government-controlled State Information Center think-tank expect the economy to grow 9.8% in the second quarter and 10% in Q3 over the same year-earlier periods.

Although these figures are slightly lower then the 10.2% increase in GDP in Q1, they exceed the annual 8% target and have reignited fears about the economy overheating.

The State Information Center recommends tightening the money supply to cool investment in the soaring property market and to allow the yuan to strengthen, which could help to slow export growth.

The forecast expects China's trade surplus to grow from $23.3 billion (€18.22bn; £12.47bn) in the first three months to $29.1bn in Q2 and $32.8bn billion in Q3. Last year, China posted a record trade surplus of $102bn.

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