Chinese Q3 GDP growth soars

| October 22, 2009

Official figures show that Chinese GDP growth surged to 8.9% in the July to September period, up from 7.9% in the April to June period.

The strong result was due to all sectors performing strongly and was the fastest GDP growth since quarter three last year.

Many analysts have described China’s recovery as “impressive”.

In the nine months to September, the Chinese economy expanded by 7.7% and according to Chinese officials, the economy is on target to reach 8% of economic growth for the full 2009 year.

In order to boost the economy, the Government embarked on a massive stimulus package of infrastructure projects to create jobs.

However, deflation has been a problem for eight consecutive months and in some areas, unemployment remains high.

However, the economy appears to be in a better position that many of its counterparts throughout the world.

Earlier this week, it was announced that annual car production in China has accelerated and topped the 10 million mark for the first time and is set to overtake the world’s leading economies.

Only the US and Japan (the world’s number one and two economies) have produced 10 million cars in a single year.

China’s car industry has expanded rapidly over the last few years and in January 2009, it became the world’s largest car market when sales outperformed the US for the first time.

Carmakers in China are struggling to keep up with growing demand after state incentives, which include tax cuts on cars with engines smaller than 1.6 litres, resulted in a hike in sales.

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