China's economy grew by 10.7 per cent last year and faces strains from a soaring trade surplus and excessive investment, the government said today.
The annual growth figure was China's highest since the 10.9 per cent rate reported in 1995 and exceeded forecasts by most Chinese and foreign economists.
Growth in 2007 should continue to be "fast and stable", the commissioner of the National Bureau of Statistics, Xie Fuzhan, said.
Investment in real estate and other assets surged, while consumer spending grew more slowly, Mr Xie reported, suggesting Beijing still faced problems in its effort to cool off an investment boom and reduce China's reliance on exports by boosting domestic consumption.
"Outstanding problems still exist with the irrational relationship between investment and consumption, the imbalance of payments and excess liquidity in the banking system," he said.
In efforts to boost consumer spending, Mr Xie said, "we are still not seeing significant results".
Investment in real estate grew by 21.8 per cent - 0.9 of a percentage point above 2005's growth rate - while overall investment in assets was up 24 per cent. He said retail sales grew at an annual rate of 13.7 per cent, a slightly faster rate than 2005.
Worried that runaway spending could spark inflation or a debt crisis, the government has raised interest rates twice, repeatedly tightened bank credit and imposed curbs on investment in real estate, auto factories and other projects. Fourth quarter growth slowed slightly, but not much.
AP