China, the world''s fourth largest economy, grew at
a scorching 11.9 per cent a 11-1/2-year high
in the second quarter of the current year, confirming
analysts'' fears of a further policy tightening to cool
the world''s fastest-growing economy.
now well on course for a fifth straight year of double-digit
growth, is expected to overtake Germany as the world''s
third-biggest economy the end of the current year.
11.9 per cent growth that followed a first quarter gross
domestic product growth of 11.1 per cent, also exceeded
expectations of a 10.8 per cent rise in the second quarter,
according to China''s National Bureau of Statistics.
will continue with moderate tightening to control the
monetary and credit situation," Li Xiaochao, a spokesman
of the agency, said.
reported a moderate rise in consumer price inflation,
which hit a 33-month high of 4.4 per cent in June, up
from 3.4 per cent in May, amidst soaring prices of pork
production in June rose 19.4 per cent from the same period
a year earlier while urban investments grew 28.5 per cent.
The yuan also edged up to 7.5632 per dollar from 7.5661
at the close of trading on June 18.
central bank is expected to intervene by further raising
interest rates and banks'' required cash reserves. It could
also suck cash out of the banking system by selling bonds
and imposing lending curbs on banks.
the state may withhold approval for new investment projects
and increase taxes to deter energy-intensive exports,
could also let the yuan appreciate faster to cap the rising
export surplus or give incentives to savings by removing
or reducing tax on interest rates.
overtaking Britain in 2005 to become the fourth-largest
economy, China is now breathing down Germany''s neck. China''s
GDP was $2.7 trillion in 2006, just below Germany''s $2.9
trillion, according to World Bank figures.