China's GDP grows 9.7% in Q1

China’s GDP grows 9.7% in Q1

China's GDP (Gross Domestic Product) grew by 9.7%, which is higher than expected in the first quarter of 2004. An official from National Bureau of Statistics announced that GDP soared to Yuan 2.71 trillion ($327.4 billion). He also added that the government hasn't been able to control inessential investments in industries like construction, which causes stoppage in supplies of raw materials, energy and transportation. It is also reported that the government will have to take further precautions if investments continue to increase like this. According to recent reports, fixed asset investment increased by 43% in the first quarter to Yuan 879.9 billion ($106.3 billion). Rising investments and production have driven up prices of raw materials. The wholesale price of coal increased by 24% from a year earlier while steel product prices rose by 36%. In addition, China also worries about unrestrained bank loans, over investments in industries, huge rise in fixed asset investment and rising inflation. Moreover, it seems that the investments will remain strong in the next six months at least.