China says its economy expanded by 8.7% in 2009, exceeding even the government's own initial expectations.
China says its economy grew by 8.7% in 2009, and by 10.7% in the final quarter of the year, compared with 2008.
The pace of change increased as the year went on, with growth in the final quarter of 2009 increasing by 10.7% from 2008.
Analysts say it is likely that China has now overtaken Japan as the world's second largest economy behind the US.
It is a major turnaround for an economy that was hit by the global downturn just a year ago.
But they say currency fluctuations make it difficult to compare the two nations precisely, and some experts question the accuracy of China's figures.
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 around 6% in 2009.
Japan announces its latest GDP figures next month. Its economy is likely to have contracted by around 6% in 2009.
'Right direction'
The announcement was made by China's National Bureau of Statistics (NBS).
China's GDP announcement was made by Ma Jiantang, head of the National Bureau of Statistics.
A government spokesman said the world economic situation remained uncertain so Beijing would keep its policies stable, the Associated Press reports.
He said China had faced "severe difficulties" in 2009, but its economy has now recovered and is moving in the right direction.
China was hit by the world economic crisis during late 2008 and early 2009, but not as badly as other countries.
Annual growth was only slightly down on 2008.
It recovered with the help of a massive government stimulus package.
But Mr Ma played down speculation that China's economy had now overtaken Japan's.
"According 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."
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.
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.
"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 of the amount of loans made by the country's banks.
