China’s GDP hits 7.9% in the second quarter 2009

Posted by Aliuser on Jul 17, 2009 in China Import and Export

China’s Gross Domestic Product (GDP) in the second quarter was surprisingly strong, rose 7.9% year on year, beating pessimistic market outlook. The first quarter recorded a 6.1% growth.

China-GDP

Spurred by domestic demand and investment-led activities which bolstered nearly 4 per cent and 6 percent GDP growth, respectively Yet the overall growth rate was stymied by stagnant export figures during the same period, stealing almost 3 percent.

Since November last year, China has adopted a series of stimulus measures including a 4-trillion yuan investment package, tax cuts, and consumer subsidies in an attempt to shore up growth and employment.

China’s consumer price index (CPI),a main gauge of inflation, dipped 1.7 percent in June from a year earlier, the National Bureau of Statistics (NBS) said on Thursday.

Producer price index (PPI), a major measurement of inflation at the wholesale level, fell 7.8 percent year on year in June, according to the NBS.

It was two days ago, The People’s Bank of China announced that China’s foreign exchange reserves have surpassed US$2 trillion. Analysts attributed the accerlated growth of China’s foreign currency reserve mainly to overseas investors viewing China as the strongest world’s economy, have poured money into the mainland’s stocks and property.

They also warned that new assets bubbles are looming ahead.

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