China’s gross domestic product soared 10.7 per cent in the last three months of 2009, official figures showed.
GDP growth rate in the last quarter of 2009 brought whole year’s growth rate at 8.7 per cent, up from Government’s target of 8 per cent.
At the same time, consumer prices jumped 1.9 per cent in December as compared with 0.6 per cent in the previous month.
Speaking his mind, Barry Norris from Argonaut Capital Partners said, "The genie has been let out of the bottle. China will have to tighten monetary policy to prevent it getting worse.”
However, some analysts are positive about China’s recovery. An analyst said that China had started to roll back the extraordinary stimulus packages to tackle pressure of inflation and asset bubbles.
It is worth mentioning here that China’s financial regulators have already ordered some of China’s major banks to halt lending.
Separately, the US is claiming that China is undervaluing its currency with a view to steal American jobs. On the other hand, China is saying that the Americans are going down the protectionist route and blaming other nations for their domestic economic problems.