Beijing: Buoyed by sterling performances by industrial and foreign trade sectors, China's economy registered its best performance since 1997 with the gross domestic product (GDP) rising by an impressive 9.9 per cent in the first quarter of 2003.

The National Bureau of Statistics for January-March period show that Chin 9.9 per cent from the same period last year.

The high growth in the first quarter could be sustained throughout the year with the government pursuing a pro-active fiscal policy, prudent monetary policy and boosting consumer demand during the past five years, National Bureau of Statistics (NBS) spokesman Yao Jingyuan told reporters.

"I am confident about China's economy in 2003 despite the emergence of some unstable factors in recent times," he said referring to the Iraq war and the outbreak of Severe Acute Respiratory Syndrome (SARS).

During the first quarter, China's industrial production amounted to $ 102.09 billion, up 17.2 per cent over the previous year. The industrial enterprises also netted $ 11.86 billion in profit in the first two months, up 1.2 times, over the corresponding period last year.

China's foreign trade rose sharply by 42.4 percent during January-March period despite the gloomy economic scenario.

The major trading nation's total exports and imports were valued at $ 173.7 billion.

With the faster growth of imports, China's trade surplus went into the negative territory for the first time in recent history by recording a $ 10 billion deficit.

China's entry into the World Trade Organisation (WTO) in 2001 has also helped the country to attract more foreign direct investment (FDI) during the year, Yao said.

PTI