Chinese GDP Exceeds Forecasts
Posted on January 22, 2010 by Shay Greenberg for Luckyroom.com
China easily topped the goal of development for 2009, after the impressive performance of the economy in the fourth quarter, which paved the way for a more stringent monetary policy and put the country on the path that will help its lags behind Japan and therefore will boost it to become the second largest economy in the world. Indeed, the Chinese gross domestic product (GDP) grew by 10.7% in the quarter October – December compared with the corresponding period of 2008, exceeding forecasts of the market to increase 10.9% and the rate of 9.1% third quarter.
The fastest quarterly growth in China, increases the likelihood that Beijing will raise rates in coming months, following a series of smaller movements, aimed to rein in lending and prevent possible overheating the economy and the markets of China. The central bank yesterday raised the rate on Treasury bills for the second time this year after growing concerns about inflationary pressures and bubbles assets.
Throughout the course of 2009, China’s economy grew 8.7%, exceeding the official target of 8% set by Beijing. The above data prompted economists of JPMorgan and RBS to revise their forecasts for growth in China this year to 10% from 9.7% and 9.5% which were previously predicted, but the prospect of an increasingly tight monetary policy in the country overshadow the optimism about China’s contribution to the recovery of the global economy. Support measures of 4 trillion. Yuan (585 billion U.S. dollars), adopted last year in Beijing, lead to unprecedented increase in lending by Chinese banks, confirming that China was the first major economy in the world who rebounded strongly from the credit crisis.
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