China's Economy Grew 10.3% in 2010

Jan. 20, 2011
Output from the country's millions of factories and workshops rose 15.7% for all of 2010.

Marking the fastest annual pace since the onset of the global crisis, China said on Jan. 20 that its economy grew 10.3% in 2010.

Gross domestic product rose by 9.8% in the fourth quarter, accelerating from the previous quarter and exceeding analysts' expectations, cementing China's position as the world's second-largest economy.

Output from the country's millions of factories and workshops rose 15.7% for all of 2010 as government spending on infrastructure in urban areas rose 24.5% over the 12 months.

Retail sales rose 18.4% in 2010.

While consumer inflation in December eased from the previous month, it remained stubbornly high at 4.6% despite Beijing's efforts to rein in prices, spooking investors in the region who fear further tightening measures.

Analysts said the pick-up in growth in the fourth quarter -- partly driven by stronger exports -- and the still-high inflation in December supported the case for further interest rate hikes and bank lending curbs. "Policymakers will not claim a big victory on the fall of CPI inflation to below 5% in December," said Lu Ting, an economist at Bank of America-Merrill Lynch.


"Currently the economy is in a critical period of transforming from recovery to stable growth," said Ma Jiantang, Commissioner of the National Bureau of Statistics. He explained that China would boost efforts to transform its "economic growth pattern" -- echoing comments made on Jan. 19 in Washington by President Hu, who pledged to boost domestic demand and spending.

The country's consumer price index, the main gauge of inflation, rose 3.3% for all of 2010 -- exceeding the government's full-year target of three percent as food costs soared. The December figure was slightly better than the 5.1% increase in November, which was the fastest pace in more than two years.

For IHS Global Insight analyst Alistair Thornton, "a new wave of credit expansion is driving inflationary pressure, in both consumer prices and asset markets, with a re-acceleration in construction and fixed investment."

Copyright Agence France-Presse, 2011

Popular Sponsored Recommendations

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!