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| Chinese President Hu Jintao shakes hands with members of a delegation led by Ichiro Ozawa, secretary general of the ruling Democratic Party of Japan (DPJ), in Beijing, Dec. 10, 2009. Photo: Xinhua/Liu Weibing
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China's economic recovery surged ahead in November with with industrial production rising by 19.1 percent compared with the year before; imports jumped 26.7 percent and exports fell 1.2 percent from the November 2008 level but the dip compared with double-digit year-over-year plunges in previous months.
The increase in industrial output followed a 16.1 percent rise in October.
Consumer price inflation in November rose 0.6 percent compared with a 0.5 percent decline the month before. Producer prices fell by 2.1 per cent compared with a 5.8 per cent decline the month before.
China's urban fixed-asset investment rose 32.1 percent year on year in the first 11 months to RMB16.86 trillion (US$2.47 trillion), the National Bureau of Statistics (NBS) announced Friday.
The growth rate was 5.3 percentage points higher than that in the same period last year, but 1 percentage point lower than that in the first 10 months, NBS spokesman Sheng Laiyun said at a press conference.
"Investment by the central government is expected to grow further over next year, but at a slower speed,"said Wang Tao, analyst with the UBS Securities told teh Satte news agency Xinhua.
Investment by municipalities rose 33.9 percent from a year earlier, showing that private investment had begun to pick up, said Zhang Hanya, a senior researcher with the Investment Institution of the National Development and Reform Commission (NDRC).
Total spending on new projects was RMB13.69 trillion up 76.6 percent year on year, but 4.5 percentage points lower than that in the first 10 months.
"The slower growth indicates that the government has been more cautious when approving new projects," said Zhang.
Zhang also predicted an upsurge in investment in new projects during the first two quarters next year.
"An investment cycle usually comprises three years, and the second year used to account for 40 to 60 percent of total spending. There would be a climax of investment in the first six months as this year has seen a large amount of projects begin,"said Zhang.
The annual investment is likely to top RMB22 trillion as businesses were bullish on the country's economic outlook and increased their investment, said Zhang.
In the first 11 months, investment in the primary industry, including farming, fishing and forestry sectors, gained 51.5 percent year on year.
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| The test-running bullet trains prepare for their first journeys at the station in Guangzhou, capital of south China's Guangdong Province - - China's industrial heartland - - China plans to build 42 high-speed passenger rail lines with a total length of 13,000 kilometers in the three years. Dec. 9, 2009. Photo: Xinhua/Lu Hanxin |
China's retail sales rose 15.8 percent year on year to RMB1.13 trillion ($166 billion) in November, the NBS also announced on Friday.
The rise was 5 percentage points lower than that of a year earlier. It was also down 0.4 percentage points from that in October, the NBS data showed.
China has pegged the yuan at about 6.83 to the US dollar for the past 17 months to assist exporters and according to Bloomberg, yuan forwards indicated yesterday that the currency will appreciate about 2.6 percent in the next 12 months even after Premier Wen Jiabao last month rebuffed calls by European leaders for gains.
The EU remained China's biggest trading partner, though bilateral trade declined 17 percent to $326.27 billion in value in the first 11 months; the United States was second with trade at $266.54 billion, down 13.4 percent; Japan followed with trade down 17.4 percent to $203.33 billion dollars.
