Chinese economy grows 9.1 percent in 2003

China's economy continued growing at a blistering pace in 2003, expanding 9.1 percent for its best performance since 1997 and with more in store this year, the government said Tuesday.
The National Bureau of Statistics (NBS) said gross domestic product was 11.67 trillion yuan (1.4 trillion dollars), up 9.1 percent, as the economy shrugged off the impact of Severe Acute Respiratory Syndrome which held it back in the second quarter.
Growth in 2002 was eight percent.
GDP in the fourth quarter alone rose 9.9 percent, while growth in the first nine months was revised to 8.7 percent from 8.5 percent, due to late reporting of value-added output.
NBS director Li Deshui said the booming economy was underpinned by value-added industrial output continuing at a heady clip, rising 17 percent over the year after a gain of 12.6 percent in 2002.
Massive fixed asset investment - a measure of government spending on infrastructure - served as a main engine for growth, jumping 26.7 percent, compared to 16.1 percent in 2002.
However, this slowed from the 31.1 percent rate recorded in the first half of 2003 and cooling investment is likely to slow down the frenetic pace of economic expansion this year, analysts said.
Consumer spending was another strong feature, with retail sales growing 9.1 percent in 2003 while inflation ran at 1.2 percent.
Despite the positive picture, Li warned that China's GDP in the first quarter of 2004 will probably slow from the fourth quarter's 9.9 percent - but it will not be a "dramatic decline."
Li gave a conservative forecast for GDP growth in 2004 at "over seven percent" but stressed China will continue the trend of rapid growth of recent years which has made it the fastest growing major economy in the world.
"I believe we'll still keep the momentum of fast growth," Li said, citing the large number of infrastructure and other investment projects launched last year which will continue into 2004, as well as stable consumer demand.
He rejected concerns that China's economy may be overheating.
Imports surged 39.9 percent to 412.84 billion dollars as the country sucked in commodities from around the world to fuel its booming economy and are expected to continue growing this year.
Per capita gross domestic product came in at 1,090 dollars.