China's GDP grows 11.4 percent in 2007

www.chinaview.cn 2008-01-24 10:06:40

BEIJING, Jan. 24 (Xinhua) -- China's gross domestic product (GDP) grew 11.4 percent year-on-year to 24.6619 trillion yuan (3.43 trillion U.S. dollars) in 2007, but the risks of spiraling inflation and economic overheating were also rising.

The growth rate was 0.3 percentage points higher than the 2006 level revised at 11.1 percent, the National Bureau of Statistics (NBS) said on Thursday.

NBS head Xie Fuzhan told reporters here that 2007 was the fifth year in a row in which GDP had expanded by more than 10 percent. Analysts said the 2007 figure was also the highest of the past 13 years.

Breaking economic growth down by quarter, GDP expanded 11.1 percent in the first quarter, 11.9 percent in the second, 11.5 percent in the third and 11.2 percent in the fourth.

Xie said that the United States and China had been powerful engines for the current cycle of global growth. However, the mounting possibility of the U.S. economy moving into a recession was bound to have a negative effect on the world economy.

However, Xie was confident of China's economic prospects, saying a "steady" growth was likely this year.

Xie said, "We will keep a close watch on developments in the U.S. economy on one hand. On the other hand, we'll be striving to address institutional and structural problems in the Chinese economy."

He said there was still a risk that China's economy could shift from rapid growth to overheating this year, with growing inflationary pressure. To avert this, the central government had adopted a tight monetary policy in tandem with a prudent fiscal policy for 2008.

The NBS also reported that in 2007, primary industry output was2.89 trillion yuan, up 3.7 percent, while that of the secondary sector was 12.14 trillion yuan, up 13.4 percent, and the tertiary sector, 9.63 trillion yuan, up 11.4 percent.

The growth rate for the primary sector was 1.3 percentage points lower than in 2006, while the rates for the secondary and tertiary sectors were 0.4 percentage point and 0.6 percentage point higher, respectively.

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