Beijing: China's economy expanded 10.6 per cent in the first quarter, underlining the strength of the nation's expansion as a slump in the US drags down global growth.

Gross domestic product rose more than the 10.4 per cent estimate of economists surveyed after gaining 11.2 per cent in the previous three months.

Consumer prices rose 8.3 per cent in March, close to the fastest pace in 11 years and maintaining pressure for the yuan to keep rising to ease import costs, today's figures showed.

China, the biggest contributor to world growth, is trying to prevent rising food prices from stoking social instability while avoiding measures that may trigger a bigger slowdown.

Investment and consumption sustained the economy as the worst snowstorms in 50 years closed factories, destroyed crops and delayed shipments and US demand for exports weakened.

Factory and property spending in urban areas grew 25.9 per cent in the first three months from a year earlier after a 24.3 per cent increase in January and February combined. Retail sales climbed 21.5 per cent last month, the fastest pace since at least 1999.

China will report a 9.3 per cent expansion this year as the world economy slows because of the biggest financial crisis in the US since the Great Depression, the International Monetary Fund forecast.
Source : PTI