In the State Information Center's latest report, released March 31, it raises its expectations of China's GDP growth in the first quarter. The report found that because consumption is increasing rapidly, GDP is expected to increase about 11 percent in the first quarter. In February, the State Information Center estimated that the growth rate of GDP in the first quarter would be 10.2 percent.

The adjustment is based on an analysis of macro-economic indicators for the first two months, the report said. Consumption rose as result of rapid economic growth for four consecutive years, with people's incomes growing accordingly. Investment fell to a reasonable level and the structure of investment has been altered. Exports also grew rapidly, and the structure here too has been improved.

Although M1 and Renminbi loans continued to grow rapidly, the consumer price index (CPI) remained within a normal range, pointing to the possibility of still higher economic growth.

The 2007 Asian Development Outlook Update, published by the Asian Development Bank, found that on the basis of economic growth in 2006, in 2007 and 2008, the growth rate of the Chinese economy would fall to 10 percent and 9.8 percent respectively, and that investment would continue to drive the economy.

By People's Daily Online