Even as the IMF and the ADB lower their global growth forecast for 2008, China has revised its economic growth rate for 2007 from 11.4 per cent earlier to 11.9 per cent at $3.57 trillion taking it closer to overtaking Germany, expected to grow at 2.4 per cent to $3.8 trillion, as the world's third-largest economy in dollar terms.

China's GDP has grown by at least 10 per cent for five years in a row. It grew at its fastest pace since 1994, belying analyst expectations of a slowdown, and may have become the third largest economy had it not been for the strengthening of the euro.

The Chinese National Bureau of Statistics said the revision had been necessitated by the earlier estimates having underestimated the output from the service sector. It said the new figures indicated that the service sector had a higher output than reported earlier.

The revision puts the growth of services to 12.6 per cent, up from the previous estimate of 11.4 per cent and above the 12.1 per cent recorded in 2006.

As China's economy strengthens, so does the yuan, its currency, which yesterday breached 7 yuan to the dollar for the first time since July 2005, when it was allowed to float.

Chinese officials believe that the country's economy had probably peaked and growth could lose momentum as exports weakened and in January this year, the Bank of China said in a report that growth for 2008 was expected to slow to 10.5 per cent.
 
The International Monetary Fund on Wednesday cut its forecast for the China's 2008 growth to 9.3 per cent from 10.0 per cent.