The Chinese economy expanded at an accelerated rate of 11.9 per cent in the first quarter, underlining the rapid recovery from the global economic crisis but raising new questions about the risks of overheating.
The economy grew at the fastest rate in nearly three years and more quickly than economists had expected. The pace of growth puts new pressure on Beijing to consider tougher tightening measures, including appreciating the exchange rate and increasing interest rates.
The first quarter GDP figures came out a day after the government revealed that housing prices increased by 11.7 per cent over the last 12 months, the fastest rate since the figures were first published five years ago and prompting new concerns about a potential bubble in the property market.