17 Jul 2009

China grows faster

6:03 am on 17 July 2009

China's economy grew at an annual rate of 7.9% between April and June, up from 6.1% in the first quarter, due to a big government stimulus package worth 4 trillion yuan ($US585 billion) last November.

This economic expansion comes as most nations in the West continue to experience recession.

Beijing now expects China to achieve 8% growth for 2009 as a whole, which compares with a predicted contraction of between 1% and 1.5% in the United States.

However, the Chinese government warned that some economic challenges remain.

The BBC reports industrial output - a measure of activity in the nation's factories and workshops - grew by more than 10% year on year in June.

Urban fixed asset investment - a measure of government spending on infrastructure - rose by more than 35% over the same period.

Economic growth in the first quarter of 6.1%, was the weakest growth since quarterly records began in 1992.

China experienced double-digit growth from 2003 - 2007 and recorded 9% growth in 2008.