www.gochinaauto.com- Jan.22th,2010, China published its annual economy data in Beijing, It was reported that the annual GDP growth rate was 8.7%, which was above the target of China government raised in the beginning of 2009. And China GDP expanded 10.7% in the lasted quarter of 2009, picking up from 9.1% in the third quarter. The total amount of China GDP reached 4.91 trillion USD, and moved closer to surpass Japan as the second largest economy in the world.
China economy strongly rebounded in 2009 benefitting from the stimulus policy carried by the government in 2009, including the 4 trillion RMB incentive plan, active monetary policy and fiscal policy, and the direct result was the booming of the automobile market and real estate market.
As the growth of the economy, China government showed it new worry about inflation as well. The issued data showed that two key price indexes ticked up in December, CPI rose 1.9% in December, accelerating sharply from the growth rate of 0.6% in November, when it followed nine months of declines. PPI also rose 1.7% from a year earlier, well above expectations for a 0.5% rise and reversing November’s 2.1% drop.
To worry the inflation, China government restarted to raise reserve ratio of the finance institute in Jan.18th, 2010, which was the first time raising the reserve ratio since October, 2008, and was thought as the new symbol of new monetary policy by many investors and analyst. The expectation of raising the interest rate became stronger than before.