China's 2006 economic rise revised to 11.1%
Thursday, July 12, 2007
CHINA'S white-hot economy expanded even faster than originally thought last year, the government said yesterday in revising 2006 the growth number to 11.1 per cent from 10.7 per cent.
The economy last year was worth 21.09 trillion yuan ($4.22 trillion), the National Statistics Bureau said, or about US$2.65 trillion based on average 2006 exchange rates.
The original 10.7 per cent growth figure was already an 11-year high and the revision puts the Asian giant even closer to surpassing Germany as the world's third biggest economy, which economists had initially forecast to happen in 2008.
In what has become an almost routine mid-year adjustment, the total economic growth for 2006 was raised from an original January estimate of 20.9 trillion yuan.
The bureau said in a notice posted on its website that the upward revision was made due to a continuing assessment of last year's economic activity, and the figures could grow still based on a final assessment later this year.
The initial January economic figure underestimated growth in the industrial and services sectors, the bureau said.
The country's double-digit growth, fuelled by investment and exports, has led to concern that the temperature might be too hot and Beijing has introduced a series of measures aimed at cooling things down, to little effect.
However one impact of the upward revision will be to make the first-half 2007 growth figures smaller due to the higher 2006 base of comparison, said Qi Jingmei, a researcher with the State Information Centre, a government economic think tank.
"This will reduce the pressure on this year's figures. The direct impact will be that this year's economic growth rate will seem slower," Qi told AFP.
The first-half numbers of 2007 are due to be released next week.
Past re-assessments have vaulted China higher in the world economic rankings.
In late 2005, economic activity for the previous year was revised upward by a hefty US$284 billion, moving China up several spots to the current number four.
AFP
The economy last year was worth 21.09 trillion yuan ($4.22 trillion), the National Statistics Bureau said, or about US$2.65 trillion based on average 2006 exchange rates.
The original 10.7 per cent growth figure was already an 11-year high and the revision puts the Asian giant even closer to surpassing Germany as the world's third biggest economy, which economists had initially forecast to happen in 2008.
In what has become an almost routine mid-year adjustment, the total economic growth for 2006 was raised from an original January estimate of 20.9 trillion yuan.
The bureau said in a notice posted on its website that the upward revision was made due to a continuing assessment of last year's economic activity, and the figures could grow still based on a final assessment later this year.
The initial January economic figure underestimated growth in the industrial and services sectors, the bureau said.
The country's double-digit growth, fuelled by investment and exports, has led to concern that the temperature might be too hot and Beijing has introduced a series of measures aimed at cooling things down, to little effect.
However one impact of the upward revision will be to make the first-half 2007 growth figures smaller due to the higher 2006 base of comparison, said Qi Jingmei, a researcher with the State Information Centre, a government economic think tank.
"This will reduce the pressure on this year's figures. The direct impact will be that this year's economic growth rate will seem slower," Qi told AFP.
The first-half numbers of 2007 are due to be released next week.
Past re-assessments have vaulted China higher in the world economic rankings.
In late 2005, economic activity for the previous year was revised upward by a hefty US$284 billion, moving China up several spots to the current number four.
AFP
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