About Us   Jobs   Contact Us      


 
Google  

Exports Fuel Rapid Rise in China's Production
    2007-03-16 09:32:06     Shanghai Daily
Strong exports fueled the rapid growth in China's industrial production in the past two months, the National Bureau of Statistics said Thursday, but the rise raised prospects the central bank may tighten monetary policy to stave off overheating risks.

Production jumped 18.5 percent through February, after rising 14.7 percent in December, the bureau said. The growth over two months, combined to eliminate distortions due to Chinese New Year which occurred in January last year and in February this year, is the strongest since June.

Analysts said the robust growth in the output showed signs that the economy has rebounded from the policy-induced slowdown since the third quarter of last year.

"Strong exports were likely an important driver behind the acceleration in industrial production growth," said Liang Hong, an economist at Goldman Sachs Asia Economics Research Group. "If economic activity and loan provision growth continues to accelerate, we believe the risks for policy tightening will rise."

The jump in the output came on the heels of a faster inflation, a ballooning trade surplus and rising lending.

China's consumer price index grew 2.7 percent year on year in February, up from a 2.2 percent increase in January. The trade gap widened to 23.8 billion U.S. dollars last month - a significant increase from the 15.9 billion U.S. dollars in January. Meanwhile, new loans extended by commercial banks totalled 413.8 billion yuan (53.4 billion U.S. dollars) last month, up 264.7 billion yuan from a year earlier.

The People's Bank of China, the central bank, has already raised borrowing costs twice and since last year has asked banks on five occasions to set aside more reserves to curb the excessive liquidity and rein in investment.

Data on urban fixed-asset spending, another major barometer of the economy, will be released today by the bureau. Growth hit 24.5 percent in 2006.

In Thursday's report, vehicle production climbed 21.5 percent in the first two months, with car output expanding 29 percent. Steel production jumped 25.4 percent.

         Bookmark and Share
Recommend


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. All rights reserved. Reproduction of text for non-commercial purposes only is permitted provided that both the source and author are acknowledged and a notifying email is sent to us.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

Also on our site
China | World
• Russian Natural Gas Supplies to Balkans Halted
• Three Israeli Soldiers Killed in Friendly Fire in Gaza
• Polanski's Lawyers Seek to Have Sex Case Dismissed
• Foreign Journalists still Not Allowed into Gaza
• US VP-elect Joe Biden to Visit Pakistan
• China Curbs Overseas Trips on Public Expense
Business | Sports | SciTech
• China Issues Long-awaited 3G Licenses
• Wahaha, Danone Start Trademark Arbitration
• GM Reports 31 Percent Sales Decline in U.S. Market
• Call for More Overseas Talents
• Bulgarian Figure Skating Champion Sentenced to 2.5 Years in Prison
• China's Mission to Mars Set for Take-off
Life | Showbiz
• A Seemingly Endless Scandal
• Asian Art Top Show Kicks off in Beijing
• Behind-the-Scene Photos of "Look for a Star"
• Universal Pictures Movies Set New B.O. Record in 2008
• Tan Dun's Deep Pool of talent
• Top 10 Shows in 2008 
Webcast  
• China Drive, Afternoon, 2009-01-07
• China Drive, Afternoon, 2009-01-06
• China Drive, Morning, 2009-01-06
• Official Property Declaration System
• India handed over evidence of Mumbai attacks to Pakistan
• EU delegation holds talks to push for a cease-fire in Gaza
• Mubarak Meets with EU Troika on Gaza Situation
• Bush says any Gaza ceasefire must stop Hamas rocket fire
 
View the Messages