News / Asia

China's Economic Growth Surges

China's economy grew at a strong pace in the first quarter of this year, but financial experts warn that the world's third-largest economy may be on the verge of overheating.

China's economic growth rate surged to 11.9 percent for the first quarter of this year. The government also reports that the inflation rate was 2.2 percent, which is lower than the government's target.

The economic expansion this quarter is nearly double that of the same period last year.

Li Xiaochao, with the National Bureau of Statistics, said Thursday the government is so far pleased with results.

Li says the government believes the figures show that the measures it is taking to respond to the global financial crisis are "correct and effective."

Despite the strong numbers, Li said there are still many uncertainties that could hurt economic growth.

Li said China faces many challenges - such as a drought in the southwest, constraints on farmers' income and high prices for industrial goods, which could affect efforts to meet the target of eight percent growth for the whole year.

Stephen Green, the senior China financial analyst for Standard Chartered Bank in Shanghai, warns that the results hint at possible problems for the Chinese economy in the near future.

"Yeah, we think it's signaling strong growth. The economy shows signs of overheating," he said.  "The government has already withdrawn some of its stimulus measures. It probably needs to do a little bit more, although there is a huge debate about that in Beijing at the moment."

An economy that expands too rapidly, or overheats, can experience price inflation and see costs for assets such as real estate and stocks rise to unsustainable levels. In China, inflation is a particular concern because much of the population still lives on a less than $1,000 a year, and rapidly rising food and housing costs could spark protests.

At a meeting Wednesday, China's cabinet reviewed the data and said the country would stick to its "appropriately loose" monetary stance and the active fiscal policy adopted at the height of the global financial crisis in late 2008.

However, also Wednesday, the government said housing prices are rising too fast, and Beijing cannot ignore what it described as the growing monetary and fiscal policy risks.

The latest data show China is on its way to overtake Japan as the world's second largest economy, behind the United States. China's gross domestic product last year was $4.9 trillion, just behind Japan's $5.1 trillion.

You May Like

Nigeria Incumbent in Tight Spot as Poll Nears

Muhammadu Buhari is running a strong challenge to Goodluck Jonathan, amid a faltering economy and Boko Haram security worries More

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo tells VOA that despite her fame, life is still a struggle as she waits for government's promise of support to arrive More

Video Cambodian Land Grabs Threaten Traditional Communities

At least seven different indigenous groups in Ratanakiri depend mainly on forest products for their survival, say they face loss of their land, traditional way of life More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More