China's Economy Grew at Fastest Pace in 11 Years
The gross domestic product (GDP) of China grew at the fastest rate in 11 years and inflation moved below 2 percent. The GDP grew by 10.7 percent to reach 20.94 trillion Yuan ($2.68 trillion) according to the Chinese National Bureau of Statistics. The consumer price index only increased a mild 1.5 percent. Fixed asset investment expanded by 24 percent, down two percentage points from in 2005. Exports grew 27.2 percent in 2006 while imports expanded by 20 percent, resulting in a surplus of $177.5 billion, compared to $100 billion the previous year. The huge trade surplus is putting pressure on the RMB Yuan to appreciate. While it has appreciated gradually against the U.S. dollar there has been little effect on trade patterns. The fast expansion could not change the fact that per capita GDP was just one fifth of the world average. The average income of Chinese rural residents stood at 3,587 Yuan (460 U.S. dollars) in 2006, indicating 900 million farmers on average live on ten Yuan (1.2 dollars) one day. In 2006, the economy was in good condition, NBS Director Xie Fuzhan told a press conference organized by the State Council Information Office. The economy, which overtook Britain in 2005 to become the world's fourth biggest, is moving closer to that of Germany, which is estimated to have grown by 2.2 percent last year to $2.86 trillion. Egils Milbergs, president of Center for Accelerating Innovation commented: “China's impressive growth rate and low inflation suggests the nation is likely to become the third biggest economic power in 2008.” Related readings: Investment cools slightly in 2006More job opportunities created, but still much to be doneTrade surplus hits record after 74 percent growthFarmers' pockets grew fatter last yearGuangdong GDP amounts to 2.59 trillion yuan, up 14%China's GDP grows 10.7% in 2006GDP growth in 2006Calculation for GDP to be unifiedGreen GDP will be expanded to entire mainlandDon't just measure GDP in urban developmentCirculation industry will take up 12% of GDP...