China growth reaches 13-year high

China's economy grew by 11

China's economy grew by 11.2 per cent in the fourth quarter to take annual growth to its fastest rate in 13 years, the government said today.

China's growth slowed only slightly from the third quarter's 11.5 per cent rate. For all of 2007, China grew by a stunning 11.4 per cent, the biggest rise since 1994.

A government official warned that China still faces risks of overheating despite efforts to restrain borrowing and investment.

Surging inflation eased slightly in December to 6.5 per cent but was still near decade-high levels, thanks largely to soaring food prices, the National Bureau of Statistics reported.

READ MORE

Analysts say China - closing in on Germany as the world's third-largest economy - could help to drive world growth in the event of a US slowdown, though they say it alone cannot fill the whole gap.

The rapid growth has been driven by a boom in exports and investment and came despite repeated interest rate hikes and official curbs meant to slow spending on real estate and other assets that regulators worry could ignite a financial crisis.