China's economy grew more than 10 per cent for the ninth straight quarter, underlining the strength of the nation's expansion as a slump in the US drags down global growth.
Gross domestic product (GDP) rose 10.6 per cent in the three months to March 31, more than the 10.4 per cent estimate of private economists. Consumer prices climbed 8.3 per cent in March, close to the fastest pace in 11 years, the statistics bureau said yesterday in Beijing.
China, the biggest contributor to world growth, is trying to prevent rising food prices from stoking social instability while avoiding measures that may trigger a bigger slowdown. Combating inflation and preventing overheating are the government's primary economic objectives this year, Premier Wen Jiabao said last month.
'China's resilient growth will benefit the rest of Asia and be a major contributor to global growth,' said Glenn Maguire, chief Asia economist at Societe Generale in Hong Kong. 'Monetary policy will be on hold for now, neither easing nor tightening.'
The yuan traded at 6.9947 versus the US dollar in late afternoon in Shanghai from 6.9973 before the figures were released. The currency has gained more than 4 per cent against the dollar this year, reducing import costs, compared with a 7 per cent increase in 2007.
'We will continue to implement a tight monetary policy,' said Li Xiaochao, spokesman for the statistics bureau, adding that the slowdown from the 11.2 per cent pace of expansion in the fourth quarter was a desirable result of government policies.
JP Morgan Chase yesterday forecast China's economy will grow 10.5 per cent this year, up from an estimate of 10.3 per cent previously.
China will report a 9.3 per cent expansion this year as the world economy slows because of the biggest financial crisis in the US since the Great Depression, the International Monetary Fund forecast this month.
There's still room for interest rates and the yuan to rise, central bank governor Zhou Xiaochuan said this week.
Soaring food costs hurt the 300 million people in China estimated by the World Bank to be living in poverty and the central bank said last month that a survey showed 49 per cent of households viewed inflation as 'too high to bear'.
China is facing 'great' inflationary pressures in 2008, said the statistics bureau's Mr Li, citing raw-material, labour and commodity costs and the 'lagging effect' of price increases last year.
The CSI 300 Index of shares fell 2.5 per cent to close at a one-year low, extending its decline this year to 35 per cent. Investors are concerned the government will screw monetary policy too tight after interest rates rose six times last year and bank reserve requirements jumped to a record.
Even so, Industrial & Commercial Bank of China, the world's biggest bank by market value, expects first-quarter profit to soar by more than 50 per cent.
Economists are split on whether the central bank will raise rates this year to combat inflation as higher global food and commodity costs and inflows of money from export sales and foreign direct investment maintain pressure on prices.
Inflation climbed to 8.7 per cent in February, the highest rate since May 1996. China's foreign-exchange reserves, the world's largest, rose to US$1.68 trillion at the end of March.
China has imposed price controls on food and energy and last month ordered lenders to set aside more deposits as reserves for a second time this year, pushing the ratio to 15.5 per cent.
China last week revised its estimate for 2007 economic growth to 11.9 per cent from 11.4 per cent. Last year's first- quarter expansion was 11.7 per cent, rather than the previous estimate of 11.1 per cent, the statistics bureau said yesterday.
'The economy should achieve sound and fast growth for the year,' said the statistics bureau's Mr Li.
Gross domestic product (GDP) rose 10.6 per cent in the three months to March 31, more than the 10.4 per cent estimate of private economists. Consumer prices climbed 8.3 per cent in March, close to the fastest pace in 11 years, the statistics bureau said yesterday in Beijing.
China, the biggest contributor to world growth, is trying to prevent rising food prices from stoking social instability while avoiding measures that may trigger a bigger slowdown. Combating inflation and preventing overheating are the government's primary economic objectives this year, Premier Wen Jiabao said last month.
'China's resilient growth will benefit the rest of Asia and be a major contributor to global growth,' said Glenn Maguire, chief Asia economist at Societe Generale in Hong Kong. 'Monetary policy will be on hold for now, neither easing nor tightening.'
The yuan traded at 6.9947 versus the US dollar in late afternoon in Shanghai from 6.9973 before the figures were released. The currency has gained more than 4 per cent against the dollar this year, reducing import costs, compared with a 7 per cent increase in 2007.
'We will continue to implement a tight monetary policy,' said Li Xiaochao, spokesman for the statistics bureau, adding that the slowdown from the 11.2 per cent pace of expansion in the fourth quarter was a desirable result of government policies.
JP Morgan Chase yesterday forecast China's economy will grow 10.5 per cent this year, up from an estimate of 10.3 per cent previously.
China will report a 9.3 per cent expansion this year as the world economy slows because of the biggest financial crisis in the US since the Great Depression, the International Monetary Fund forecast this month.
There's still room for interest rates and the yuan to rise, central bank governor Zhou Xiaochuan said this week.
Soaring food costs hurt the 300 million people in China estimated by the World Bank to be living in poverty and the central bank said last month that a survey showed 49 per cent of households viewed inflation as 'too high to bear'.
China is facing 'great' inflationary pressures in 2008, said the statistics bureau's Mr Li, citing raw-material, labour and commodity costs and the 'lagging effect' of price increases last year.
The CSI 300 Index of shares fell 2.5 per cent to close at a one-year low, extending its decline this year to 35 per cent. Investors are concerned the government will screw monetary policy too tight after interest rates rose six times last year and bank reserve requirements jumped to a record.
Even so, Industrial & Commercial Bank of China, the world's biggest bank by market value, expects first-quarter profit to soar by more than 50 per cent.
Economists are split on whether the central bank will raise rates this year to combat inflation as higher global food and commodity costs and inflows of money from export sales and foreign direct investment maintain pressure on prices.
Inflation climbed to 8.7 per cent in February, the highest rate since May 1996. China's foreign-exchange reserves, the world's largest, rose to US$1.68 trillion at the end of March.
China has imposed price controls on food and energy and last month ordered lenders to set aside more deposits as reserves for a second time this year, pushing the ratio to 15.5 per cent.
China last week revised its estimate for 2007 economic growth to 11.9 per cent from 11.4 per cent. Last year's first- quarter expansion was 11.7 per cent, rather than the previous estimate of 11.1 per cent, the statistics bureau said yesterday.
'The economy should achieve sound and fast growth for the year,' said the statistics bureau's Mr Li.
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