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Chinese growth rate hits 10.3 per cent
Business Digest: Talk of higher interest rates hits Shanghai and HK indices
China's economy grew at a rate of 10.3 per cent in 2010, up from 9.2 per cent in 2009, according to the National Bureau of Statistics. This cements China's new position as the world's second largest economy, topped only by the United States.
Despite a series of cooling measures, inflation came in at 3.3 per cent, just above the official target of three per cent. This is lower than the 5.1 per cent inflation seen in November, but remains too high for Beijing, who are worried about rising food prices.
Many economists believe that an effective solution would be to allow the Chinese currency, the renminbi, to appreciate and strengthen itself against the dollar. Such a move would be welcomed by the US, who believe China is keeping its currency down on purpose.
Speculation about raising interest rates in China caused local markets to dip, with the Shanghai composite index falling 2.9 per cent, and the Hong Kong Hang Seng index down 1.7 per cent.
Read the full report in the New York Times. ·
