Chinese economy expands faster than expected

China's economy expanded a faster-than-expected 9

China's economy expanded a faster-than-expected 9.5 per cent in the year through the first quarter, putting fresh pressure on Beijing to rein in growth.

The figure from the National Bureau of Statistics today compared with a median forecast of 9.1 per cent in a survey of 10 economists and 9.5 per cent growth in the fourth quarter for an economy whose thundering expansion has been a key driver for global metals and oil markets.

Strong exports played a big role in driving first-quarter growth, rising 35 per cent from a year earlier. Imports were up more than 12 per cent.

"It's a little bit higher than expected, but the important point is that net exports were the big contributor to growth in the first quarter," said Ben Simpfendorfer, an economist with JP Morgan in Hong Kong.

READ MORE

"We are still arguing for some more policy tightening, through both higher interest rates and a stronger currency. We are looking for a tightening sooner rather than later, but no draconian measures."

Statistics bureau spokesman Zheng Jingping said the $16.6 billion trade surplus in the first quarter, which compared with an $8.4 billion deficit a year earlier, and the better performance of the farm sector had helped the "stable and rapid" economic growth.

But Mr Zheng said China must remain vigilant on inflation and fixed-asset investment. Other worries included persistent shortages of coal, electricity and petroleum and the challenge of boosting rural incomes.