China’s economy expanded a blistering 8.9% in the third quarter, fuelled by lavish government stimulus spending on infrastructure projects that has helped the nation spearhead recovery from the global recession.
The world’s third-largest economy expanded 8.9% from a year earlier, speeding up from 7.9% growth in the second quarter, the National Statistics Bureau has said.
Growth for the first nine months of the year was 7.7% and officials have said they expect the economy to at least reach the annual growth target of 8%.
“Investment played an important and positive role in maintaining relatively fast growth and reversing the slowdown.”
Li Xiaochao, Statistics Bureau
China has countered the global downturn with a 4 trillion yuan (£352bn) stimulus plan involving massive spending on infrastructure such as rail and roads to pump up the domestic economy as exports slumped.
Investment in factories, construction and other fixed assets rose by one third in January-September to a record 15.5 trillion yuan (£1.37 trillion).
“Investment played an important and positive role in maintaining relatively fast growth and reversing the slowdown,” said Statistics Bureau spokesman Li Xiaochao.
The mixture of liberal credit, strong government backing for massive public works and incentives for domestic industries like autos have enabled China’s economy to quickly rebound while the US, Japan and Europe continue to flounder.