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Old 24th January 2008, 05:33 AM
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Chinese Recession?

China says its economic growth has reached its highest level in 13 years.

Increased exports and a construction boom helped the economy expand by 11.4% in 2007.

But overheating remained a danger, despite a slight easing of the expansion in the fourth quarter, the government said.

Inflation is also a serious concern, with many Chinese people hit by recent dramatic increases in the price of food and other commodities.

Price controls

Economic growth is not a problem in China, but keeping the ever-expanding economy under control is proving tricky.

The economy grew by 11.4% last year - the highest in 13 years.

New factories, roads and airports are fuelling the boom. Exports play their part too.

It took six interest rate rises by the government last year to slow things down a bit. The last quarter of 2007 saw growth ease to 11.2%.

But while other governments around the world are cutting interest rates, China will likely have to raise them again if it is to keep its economy growing at a sustainable level....

http://news.bbc.co.uk/1/hi/world/asi...ic/7206174.stm
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