Reply #11: China's GDP up 11.1% in first quarter

[UpInArms]

http://www.marketwatch.com/news/story/chinas-economy-expands-torrid-111/story.aspx?guid=%7B3FB3ADBC%2D17B4%2D49D6%2DA3DB%2D689F3DBE4D01%7D&dist=morenews

HONG KONG (MarketWatch) -- China's economy grew at a faster-than-expected pace in the first quarter and inflation rose in March above the comfort zone of policy makers, likely spurring additional austerity measures to cool down the mainland's economy.

Analysts also speculated that the odds of higher interest rates improved in the wake of the data. "There will be at least one interest-rate rise, imminently," said Standard Chartered senior economist Stephen Green.

Data released Thursday showed that gross domestic product expanded 11.1% in the March quarter, surpassing consensus expectations that had called for 10.3% growth. The first-quarter growth rate also represented a quickening from the 10.4% pace seen in the final quarter of 2006.

"It's clearly showing that the economy is still on tear and has accelerated again, and the authorities are going to have to work harder to slow growth down," said Peter Morgan, HSBC's chief Asia Pacific economist.

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