Chinese Economy Continues Strongly

Despite US trouble, it would appear that China has seen some incredible growth this last year. Here’s a brief excerpt from Bloomberg:

China’s economy, the biggest contributor to global growth, expanded 11.5 percent in the third quarter, adding pressure for faster currency appreciation and higher borrowing costs to curb inflation.

The increase in gross domestic product from a year earlier matched the median estimate of 26 economists surveyed by Bloomberg News and compared with an 11.9 percent gain in the second quarter, the fastest pace in 12 years. The statistics bureau released the figures in Beijing.

The CSI 300 Index of stocks fell the most in six weeks on speculation the central bank will raise interest rates for the sixth time this year. A record trade surplus helped drive a 26.4 percent surge in factory and property spending in the first nine months, raising the risk of idle plants and bad loans as the global economy slows.

“The central bank may raise interest rates immediately,” said Wang Qing, chief China economist at Morgan Stanley in Hong Kong. “We expect the yuan to appreciate more quickly over the next three months as part of measures to cool the economy.”

It would appear that China has managed to get inflation under control, a feat which the US is still struggling with. Sadly, America will continue to inflate as long as the US economy struggles to payoff mortgage debt.