Government economists predict 12% 1Q GDP growth

A government researcher said China’s GDP will grow by 12% this quarter, Reuters reported. Yu Bin, head of macroeconomic research at the State Council Development Research Center, made his comments following industrial output figures that showed 20.7% year-on-year growth in the first two months of the year. Growth figures this year have been particularly high given last year’s low base. Industry minister Li Yizhong said that such high growth levels reflected the effects of government stimulus and were not sustainable. A senior economist at the State Information Center also forecast 12% growth for the first quarter, but said growth would drop to 10.8% in the second quarter, and 9% or less in the third and fourth quarter. China’s official GDP growth target for the year is 8%.