Tehran, Jan. 21, 2010 (Hamsayeh.Net) - Chinese government announced the economy has been able to recover from the recent global downturn with data showing growth of up to 10.7 percent in the fourth quarter of last year and GDP increase to 8.7 percent, a sign of marked improvement.

 

Overall the economy is also sending negative signals due to inflation, an indication that the economy is overheating. Ma Jiantang, the bureau's commissioner, told reporters in Beijing that, ‘China has become the first, on the whole, to achieve recovery and stabilization in its economy, but despite the increase in our GDP and economic strength, we still have to recognize that China is a developing country… we have to be keenly aware of that.’

 

Based on this report, China would the first major economy to practically recover from global economic slump. The figures reveal China’s gross domestic productivity at almost 4.7 trillion euros for 2009. 

 

The Chinese official cautioned that his country is still a developing one with income disparity wider than ever in a nation of 1.5 billion inhabitants. He said the average yearly income for middle class city dwellers was 2,500 euros while it drops to 730 euros for people from countryside. 

 

Given the level of income disparities a small increase in inflation could translate into a major problem for the Chinese economy. According to statistics, prices jumped 0.6 percent in November from last year and then again by 1.9 percent in December.

 

Ken Peng a specialist on the subject from Citigroup told reporters that these numbers indicate a huge jump, meaning the Chinese government must quickly stop injecting stimulus funds into the economy before it nosedives again.