China’s GDP rises 8.9%
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China’s GDP grew by 8.9% in the third quarter of 2009, up from 7.9% in the second quarter, according to figures released by the National Bureau of Statistics today.
For the first nine months of the year, total GDP grew by 7.7%, reaching Rmb 21,781.7 billion (£1,948.4 billion), meaning China is well-placed to reach its growth target of 8% for 2009.
Chinese industrial production increased, with the year-on-year industry growth rate reaching 8.7%, and profit decreases slowed to 10.9% from 12.2% between January-May.
The success of China’s fiscal policy continued, with investments in fixed assets increasing by 33.4%, 6.4% higher than the previous year. Investment in infrastructure grew by 52.6%, including an 87.5% increase in railways, 50.7% in roads and 72.9% in social security and social welfare.
Money supply grew by 29.3% year-on-year, reaching Rmb 58.5 trillion
Money supply grew by 29.3% year-on-year, reaching Rmb 58.5 trillion, and outstanding loans for all financial institutions grew by Rmb 8.7 trillion over the year.
While foreign trade continued to fall, the rate of decrease fell to 20.9% from 24.9% in the first quarter of the year and 22.1% in the second.
However, economists expressed doubts over the GDP figures, with Lombard Street Research suggesting GDP grew by only 6% in real terms.
Capital Economics warned the rapid rate of growth could create asset price bubbles, as lending growth continues and China’s trade surplus continues to increase.
