Chinese economy grows 9.5% in fourth quarter

China's economic growth sped up to 9.5 per cent in the year through the fourth quarter.

China's economic growth sped up to 9.5 per cent in the year through the fourth quarter.

The strong figure, exceeding expectations for an 8.6 percent expansion, led chief statistician Mr Li Deshui to signal there would be no let-up in the campaign to restrain growth.

"We will strengthen and improve macro-economic controls and keep controls on credit and land," he said.

But any change to the currency policy would take time and he saw no immediate need to raise interest rates.

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"Whether we need to raise interest rates will be based on the economic situation," he said. "But I can't see any need right now."

The growth figure compared with 9.1 per cent in the year through the third quarter and indicated that China's economy was not heading for a sharp slowdown.

China has taken steps, including its first interest rate rise in nine years in October, to try to cool growth for fear heavy investment in key sectors could lead to overheating.

Gross domestic product for all of 2004 was 9.5 per cent higher than a year earlier thanks in part to robust exports and agricultural production, the National Bureau of Statistics said.

That compared with growth of 9.1 per cent in 2003 and was the strongest since 1996, when the economy grew 9.6 per cent.