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| China economy sees strong growth | China economy sees strong growth |
| (20 minutes later) | |
| China says its economy expanded by 8.7% in 2009, exceeding even the government's own initial expectations. | China says its economy expanded by 8.7% in 2009, exceeding even the government's own initial expectations. |
| The pace of change increased as the year went on, with growth in the final quarter of 2009 increasing by 10.7% from the same period a year earlier. | The pace of change increased as the year went on, with growth in the final quarter of 2009 increasing by 10.7% from the same period a year earlier. |
| China is now on course to overtake Japan and become the world's second-biggest economy. | China is now on course to overtake Japan and become the world's second-biggest economy. |
| Japan announces its latest GDP figures next month. Its economy is likely to have contracted by about 6% in 2009. | Japan announces its latest GDP figures next month. Its economy is likely to have contracted by about 6% in 2009. |
| 'Right direction' | 'Right direction' |
| China's GDP announcement was made by Ma Jiantang, head of the National Bureau of Statistics. | China's GDP announcement was made by Ma Jiantang, head of the National Bureau of Statistics. |
| Competition between the two countries will intensify as Chinese firms move up the value chain and start manufacturing more products for markets that Japan would once have never expected them to compete in Chris Hogg, BBC News, Shanghai class="" href="/2/hi/business/8470707.stm">Quality challenge for China | |
| He said China had faced "severe difficulties" in 2009, but its economy has now recovered and is moving in the right direction. | He said China had faced "severe difficulties" in 2009, but its economy has now recovered and is moving in the right direction. |
| Annual growth was only slightly down on 2008. | Annual growth was only slightly down on 2008. |
| But Mr Ma played down speculation that China's economy had now overtaken Japan's. | But Mr Ma played down speculation that China's economy had now overtaken Japan's. |
| "According to the UN standard - that is $1 a day - there are still 150 million poor people in China. That is China's reality," he said. | "According to the UN standard - that is $1 a day - there are still 150 million poor people in China. That is China's reality," he said. |
| "So despite the increase in our GDP and economic strength, we still have to recognise that China is still a developing country." | "So despite the increase in our GDP and economic strength, we still have to recognise that China is still a developing country." |
| These latest GDP figures have exceeded the target set by the Chinese government, the BBC's Chris Hogg in Shanghai says. | These latest GDP figures have exceeded the target set by the Chinese government, the BBC's Chris Hogg in Shanghai says. |
| This is a turnaround because China, like other countries across the world, was hit by the economic crisis during late 2008 and early 2009. Factories closed and workers were laid off. | This is a turnaround because China, like other countries across the world, was hit by the economic crisis during late 2008 and early 2009. Factories closed and workers were laid off. |
| ANALYSIS Roland Buerk, BBC News, Tokyo | |
| It is impossible to know for certain yet but economists may look back and say this was the moment China overtook Japan to become the world's second biggest economy. | |
| Official figures showed the economy expanded by 8.7% in 2009 to $4.9tn. That figure is the size of Japan's economy in 2008. | |
| Japan's numbers for 2009 are not out until next month, but are expected to show a contraction of around 6%. | |
| What is not in doubt is their trajectories. China is powering ahead while Japan is slipping behind. | |
| It should be remembered, though, that as China's population is 10 times the size of Japan's, even if its overall economy is bigger, Japanese people remain vastly richer than those in China. | |
| During the 1980s it was Japan which was rising, and some predicted then it would one day even overtake America. But then there was a crash followed by two decades of stagnation. | |
| China's economy recovered with the help of a massive government stimulus package and now there are signs it is expanding too quickly. | China's economy recovered with the help of a massive government stimulus package and now there are signs it is expanding too quickly. |
| Inflation is picking up, with Mr Ma saying consumer prices increased by 1.9% in December from a year earlier. | Inflation is picking up, with Mr Ma saying consumer prices increased by 1.9% in December from a year earlier. |
| "It reminds us to be fully aware of following the trend of price changes," he said at a press conference to announce the economic data. | "It reminds us to be fully aware of following the trend of price changes," he said at a press conference to announce the economic data. |
| Mr Ma said price rises were "mild and under control", but over recent days the government has tried to limit the amount of loans made by the country's banks. | Mr Ma said price rises were "mild and under control", but over recent days the government has tried to limit the amount of loans made by the country's banks. |
| However, some economists have questioned the reliability of China's economic data, with some accusing the government of overstating economic growth for political reasons. | However, some economists have questioned the reliability of China's economic data, with some accusing the government of overstating economic growth for political reasons. |
| Predictions | Predictions |
| Meanwhile, the World Bank has said that the global economic recovery will slow later this year as the impact of government stimulus policies wanes. | Meanwhile, the World Bank has said that the global economic recovery will slow later this year as the impact of government stimulus policies wanes. |
| The Bank has forecast growth of 2.7% this year after a contraction in 2009. | The Bank has forecast growth of 2.7% this year after a contraction in 2009. |
| However, its predictions for Japan are slightly less pessimistic than other forecasters. It estimates that Japan's economy shrunk by 5.4% last year. | However, its predictions for Japan are slightly less pessimistic than other forecasters. It estimates that Japan's economy shrunk by 5.4% last year. |
| It added that the poorest countries - those that rely on grants or subsidised lending - may require an additional $35bn to $50bn in funding just to sustain pre-crisis social programmes. | It added that the poorest countries - those that rely on grants or subsidised lending - may require an additional $35bn to $50bn in funding just to sustain pre-crisis social programmes. |
| China is expected to become the world's biggest economy in 2030. | China is expected to become the world's biggest economy in 2030. |