China's GDP soars 10.7 per cent in 4Q

China's economy has rebounded to a double-digit growth by posting a sizzling 10.7 per cent increase

The GDP in 2009 grew 8.9 per cent for the entire year, exceeding the target of 8 per cent, to reach 33.5trn yuan (about $4.9trn). This may propel the country ahead of Japan to become the world's second largest economy.

The data by National Bureau of Statistics (NBS) states that China's GDP growth for the first, second and third quarter was 6.2 per cent, 7.9 per cent and 9.1 per cent, respectively.

Last year, China's primary industry grew by 4.2 per cent, the secondary industry by 9.5 per cent, and the tertiary industry by 8.9 per cent. The total investment in fixed assets in the country increased by 30.1 per cent to 22.48trn yuan.

The impressive growth in Chinese GDP is in part due to the aggressive moves Beijing took last year, such as introducing a $586bn economic stimulus package.

However, the increase in consumer prices by 2 per cent in December led to concerns that the runaway growth may lead to inflation. The government has taken a number of measures to cool down the economy.

Some analysts say Chinese economy could overtake the United States in another 10 years from now, while Indian economy could take the third place in another 20 years after China and the US, pushing Japan to the fourth spot.