China’s GDP surges with pain
Filed Under: Politics | Posted: 07/17/2009 at 3:06AM
Comments | Region: China
The Chinese government reported its gross domestic product enjoyed a growth of 7.9 percent year on year in the second quarter.
According to the government statistics, China’s agricultural industry grew 3.8 percent to 1.2 trillion yuan in the past six months, along with manufacturing and service, which rose 6.6 percent and 8.3 percent respectively to 7 trillion yuan and 5.7 trillion yuan.
HSBC’s China economist Qu Hongbin predicts a 9.5 percent growth in 2010.
But at the meantime, hot money from outside also started to flow back into the country to take advantage of the growth, a déjà vu for the Chinese government.
Forex reserve surged to US$ 2,13 trillion by the end of June from 1.95 trillion in March, while in January it was just 1.91 trillion.
An economist in Beijing who is quoted as anonymity by the Financial Times as saying "the same expectations of a renminbi appreciation will start to accumulate all over again.”