skip to main content

Chinese growth red-hot last year

China growth - No sign of cooling
China growth - No sign of cooling

China's booming economy expanded 9.5% last year, compared with 9.3% in 2003, in an indication that measures to cool the economy had not proved effective enough.

The fourth quarter alone showed growth steaming ahead at an annual rate of 9.5%, up from 9.1% in the previous three months.

'The acceleration of economic growth in the last three months of the year was due to rapid growth in agriculture, catering, transportation and other service sectors,' said National Bureau of Statistics director Li Deshui.

Full-year gross domestic product came to $1.65 trillion as strong exports drove the economy at its quickest annual pace since 1996.

Official statisticians had been forecasting growth of 8.5% for the year while economists predicted annual growth of less than 9% for Q4.

Economists said that in the light of the stronger figures, China would be forced to clamp down further on the world's fastest growing major economy, though a breakdown of the growth figures showed declines in investment and consumer spending.

China began 2004 with serious concerns the economy was dangerously overheated as easy credit fuelled a production boom and soaring investment in government infrastructure products.

Consumer prices, driven by soaring food prices, continued to gain ground last year, rising 3.9%, or some 2.7 percentage points more than the previous year. Food prices alone jumped 9.9%.