Statistics bureau revision raises GDP for last year to 11.9pc

The mainland's economy expanded faster than thought last year with the statistics agency raising its estimate for gross domestic product growth to 11.9 per cent from an initial 11.4 per cent.

The revision puts China closer to overtaking Germany as the world's third-largest economy. Last year's economic expansion was the country's fastest since 1994.

The National Bureau of Statistics said GDP totalled 24.95 trillion yuan (HK$27.8 trillion) last year, based on current prices. This was 291.1 billion yuan more than the initial estimate.

In a statement posted on its website yesterday, the bureau said the estimate of GDP growth in 2006 had also been raised to 11.6 per cent from 11.1 per cent. The final 2006 GDP tally was 21.19 trillion yuan, up 105.2 billion from the earlier estimate.

The revision reflected greater output by the service sector than first reported, the bureau said. Services grew 12.6 per cent last year, compared with an initial estimate of 11.4 per cent.

Despite the stronger growth last year, economists said the economy would have moderated in the first quarter due to uncertainties at home and abroad.

'GDP growth is likely to soften to about 10 per cent in the first quarter of 2008 from 11.2 per cent in the last quarter of 2007, mainly driven by a slowdown in the growth of net exports,' said Liang Hong, chief Asia economist with Goldman Sachs.