China's economy surges by 11.1%

Figures released today showed China's economic capacity increased by 11.1 per cent in the first quarter of the year.

Figures released today showed China's economic capacity increased by 11.1 per cent in the first quarter of the year.

The Chinese government also announced today that inflation rose to its highest level in more than two years.

The news caused Asian markets to fall amid concerns that authorities will raise interest rates to keep China's economy from overheating.

The Chinese consumer price index in March rose 3.3 per cent, data showed, above the government's 3 per cent target, and fixed-asset investment countrywide grew a robust 23.7 per cent during March.

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A statement posted on a government website said it would work to "reduce the country's large trade surplus, limit rapid growth in house prices and maintain basic price stability".

Asian stock markets fell ahead of the report in anticipation that numbers would be stronger than expected and prompt Beijing to raise interest rates or take other measures to slow growth in China, a major regional trading power.

The nervousness was increased because Beijing delayed the release of the figures by five hours without an explanation.