China GDP Expands 11.2% in Q4

China's economy expanded more than 11 percent for the fourth straight quarter, supporting global growth as a recession looms in the U.S., Bloomberg 1/23/2008 8:40:10 PM

Gross domestic product rose 11.2 percent in the three months ended Dec. 31, compared with 11.5 percent in the third quarter, the statistics bureau said in Beijing today. That was less than the 11.3 percent median estimate of 23 economists surveyed by Bloomberg News.

About $7.6 trillion has been wiped off the value of stocks worldwide this year on concern that a U.S. slowdown will spread. That is complicating efforts by China, the other main engine of global growth, to curb lending and rein in consumer prices that rose 6.5 percent in December, stoking social tensions.

The yuan traded at 7.2260 per dollar at 10:10 a.m. in Shanghai, from 7.2250 before the report.

China's consumer prices advanced 4.8 percent in 2007 from a year earlier, outstripping the government's 3 percent target, statistics bureau said today. Fitch Ratings forecast today that inflation will average more than 5 percent this year.

Weaker U.S. demand has already contributed to a slowing of exports from China, a manufacturing base for Motorola Inc. mobile phones and Samsung Electronics Co. televisions. Overseas shipments rose at the slowest pace since 2002 in the fourth quarter. Reduced export incentives, particularly on products made by polluting industries, were also a factor.

While inflation cooled from an 11-year high of 6.9 percent in November, the pace remains more than double the central bank's annual target. Soaring costs have triggered stampedes at sales of discounted cooking oil and eggs, price controls on staple foods and memories of the unrest before the 1989 Tiananmen Square protests and crackdown.

China GDP Expands 11.2% in Q4