China GDP growth hits 10.7% in Q4 2009

Economic growth in China is now back in double digits for the fourth quarter of 2009. This is nothing short of a miracle in a year when major economies have scrambled to stay afloat through a freeze in liquidity, crisis and panic. Let's take a look at the headline figures just out Thursday morning that many say confirm the hoped-for V-shaped recovery.

China's economic growth picked up speed in the fourth quarter to reach 33.5 trillion yuan, That is an increase of 10.7 percent, compared to 8.9 percent in the third quarter. Many see the strong figure as confirmation of solid recovery in the country.

Ma Jiantang, director of National Bureau of Statistics, said, "We implemented a pro-active fiscal policy and a relatively loose monetary policy. And with the economic stimulus package, we managed to stop the economy from slumping further, helping it return to positive territory by the end of the year. "

And with robust expansion in all its major sectors, China looks set to lead global recovery, amidst continued uncertainty and weakness elsewhere in the world. Latest figures are predicting a decline of 2.5 percent for the US economy in 2009. While Japan could contract 5.4 percent, and the European Union could drop 4.1 percent. Taken as a whole, the world economy is expected to shrink by 2.2 percent in 2009, before returning to growth of 3.1 percent this year.

The National Bureau of Statistics also released other figures, pointing to solid economic fundamentals. Industrial output grow by 18.5 percent. Fixed Asset Investment climbed 30.5 percent, and retail sales stayed robust,up 17.5 percent.

Export figures which were released earlier finally put an end to 13 months of declines, surging an incredible 17.7 percent in December.