China's Economy Expands 11.9%

China's gross domestic product rose 11.9% from a year earlier in the first quarter of 2010, the fastest pace in almost three years, reports Bloomberg.

 

Citing analysts, Bloomberg notes that the latest figures could add pressure on Premier Wen Jiabao to strengthen the yuan and raise interest rates.

 

Stephen Green, head of China research at Standard Chartered Bank Plc in Shanghai, forecasts two interest-rate increases of 27 basis points each this quarter and the strengthening of the yuan against the dollar to slash import costs.

 

In a statement issued before the latest data were published, China's State Council notes the country's economic recovery has been further consolidated in recent months, but there are still major problems and risks to deal with, such as the real-estate market: property prices in China grew at the fastest pace in nearly five years in March, according to official figures released Wednesday.

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