Overheating Worries: China Economy Sizzles with 11.1% Growth in Q1 07
China's economy surged 11.1% in the first
quarter, causing the country's Cabinet to declare Thursday it will take
steps to keep the economy from overheating, reports AP. It was the highest
growth rate since Q2 2006's 11.5% growth, the fastest in a decade.
Other Highlights:
- Concerns about inflation are likely to grow after CPI rose to its highest since hitting 3.9 percent in February 2005.
- China raised interest rates three times in the past year and imposed investment curbs on real estate, the auto industry and other fields.
- Fixed-asset investment grew a robust 23.7% during March
- The first-quarter investment in real estate development was up 26.9%over the same period last year.
United States reported a record $232.5 billion trade deficit with China in 2006.
