China's economy grew 9.7 percent, which is at a slightly moderate pace in the first quarter of 2011 as the country struggles with soaring food and property prices. China's the National Bureau of Statistics (NBS) said today that economy expanded 9.7 percent on year in the first three months of the year.
"The national economy maintained steady and fast development and had a very good beginning (to the year)," NBS spokesman Sheng Laiyun said in a press conference. He pointed out that the world's second largest economy recorded a 9.8 percent growth in the final quarter of 2010 and 10.3 percent for that entire year.
Analysts said the government still has much to do to keep the economy at its best mode as higher inflation could lead to national unrest as more workers struggle to make an every day living. Consumer price in China index rose 5.4 percent year-on-year in March -- the fastest pace since July 2008 and well above the government's 2011 target of 4 percent. In the first quarter, a 5.0 percent inflation was recorded. According to government data, keeping inflation within the 5.0 percent range was "no easy job" as food prices soared 11 percent in the first quarter and housing costs rose 6.5 percent. Inflation hit 4.9 percent in February.
Prime Minister Wen Jiabao has vowed increase efforts against rising costs. One of China's leading industry associations on Wednesday ordered businesses not to raise prices and heed the state government's call to stabilize costs and keep consumers prices stable.
Source: OfficeWire
