China's GDP Grows 8.7% in 2009

China's economy expanded 8.7 percent in 2009 from a year earlier.

The National Bureau of Statistics has released key economic data for 2009, which indicate the world's third-largest economy has consolidated and broadened its recovery.

Chen Zhe has more.

The 8.7 percent economic growth in 2009 indicats that the country has achieved its full-year growth target of 8 percent for 2009.

Ma Jiantang, Director of the National Bureau of Statistics, told a press conference on Thursday that gross domestic product reached more than 33.5 trillion yuan, or about 5 trillion U.S. dollars, in 2009.

Ma attributed the recovery mainly to the government's implementation of proactive fiscal policies, a moderately loose monetary policy, and the economic stimulus package to cope with the global financial crisis.

"Last year was the most difficult one for China's economy in the new century. Thanks to the government's efforts to deal with various difficulties, the country's economy ended its accelerating slide and began to recover as a whole."

The official described the last year's economic development as a "harvest," saying the newly released figures confirmed a V-shaped economic recovery from the global downturn.

China's consumer price index, a main gauge of inflation, rose 1.9 percent year on year in December. The increase proved that China successfully eliminated the risk of deflation which was a great concern last year.

Ma said the data also served as a reminder that close attention should be paid to price changes.

"My first concern is how to hold the price rise under control while promoting the economic growth. This is a very difficult task. We should better coordinate the relationship between maintaining economic growth, adjusting economic structure and handling inflationary expectations to prevent quick price increases."

He said the government should take preemptive measures to tackle rising inflationary concerns as the easy monetary policy adopted around the world would impact the real economy.

He also said he expected to see the stable and relatively fast development of China's economy in 2010, because improvements in the global economy would continue to get better amid a slow recovery, and domestic investment and consumption would likely maintain the upward momentum.

Chen Zhe, CRI News.