China GDP jumps 9.1% in third quarter
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last Update: 3:14 AM ET Oct. 17, 2003
TOKYO (CBS.MW) -- China's economy grew strongly in the third quarter on the back of large increases for exports, consumer spending and investment, the official Xinhua news agency said Friday, citing the National Bureau of Statistics.
China's gross domestic product rose 9.1 percent in the third quarter, better than a Bloomberg forecast for 8.7 percent growth and second-quarter growth of 6.7 percent.
For the first nine months of the year, China's economy grew 8.5 percent to 7.91 trillion yuan ($956 billion).
The mainland's GDP is now expected to grow around 8.5 percent for the full year, Reuters quoted the statistical bureau's deputy chief Qiu Xiaohua as saying at a news conference.
In the third quarter, exports rose 30 percent, while fixed investment jumped 31 percent and retail sales grew 8.6 percent.
"China growth was stronger than expected in the (third quarter) while inflation remains low and consumption recovers," said Win Thin, economist with Mandalay Advisors. "Overall, the economy is in solid shape, and we see no need for policy-makers there to endanger this outlook with a shift in (forex) policy.
The Chinese government had forecast that the economy would grow by 7 percent this year.
The latest numbers will stoke concern that the economy could be overheating. It may also put pressure on the Chinese government to revalue the yen amid U.S. complaints that the undervalued currency has created an export boom for the mainland at the expense of its trading partners.
The Shanghai Composite surged on the news, gaining 0.5 percent to 1,372. China's booming economy is drawing a huge influx of foreign investment from multinationals such as Ford (F: news, chart, profile), which announced Friday that it's pouring over $1 billion over the next several years to expand production with its Chinese partner. Read full story. |
