China’s Economy Expands at Torrid Pace in First Quarter
The Los Angeles Times reports that in the first quarter of 2010, the Chinese GDP grew 11.9% over last year:
Analysts say the robust growth could spur the Chinese government to boost efforts to control inflation and cool an overheated real estate market. Measures such as interest rate hikes and a small appreciation of the currency could be in store.
“The acceleration in growth argues for further policy tightening,” said Ben Simpfendorfer, chief China economist for the Royal Bank of Scotland in Hong Kong.
China’s consumer price index, a key measure of inflation, rose 2.4% in March compared with March 2009. In February inflation was 2.7%. Inflation traditionally decelerates the month after Chinese New Year as food prices drop with lower demand.