Retail sales up 17% in 2007

Retail sales in China grew 17% year-on-year to US$1.2 trillion in 2007, the South China Morning Post reported, citing state media. The fast pace of growth, which bested 2006’s 13.7% growth, was seen as indicating the country’s increased reliance on domestic consumption as a portion of its GDP. In 2006 domestic consumption accounted for about one-third of China’s GDP. However, others argue that strong spending figures indicate the failure of the central government to slow down an overheating economy and galloping inflation. Official data on the country’s 2007 GDP have not yet been released, though most estimates place the figure above 11%.