The economic growth of China in 2010 accelerated on the annual basis and again exceeded the mark of 10%, was reported by Bloomberg. In 2010 the GDP of the country increased by 10.3% while in 2009 it escalated only by 9.2%.
The growth of the GDP in the 4th quarter was equal to 9.8%, which is above the average forecast of the analysts, who expected the upturn by 9.4%.
Such rapid advance of economy last year exposes China to great deflationary risk. According to the forecasts of the Citigroup and Credit Suisse, in the 1st half of 2011 the tempo of the prices upswing can hit 6% annually.
In mid 2000s the GDP of China was growing fast, having declined to 8-9% only during the world financial crisis. However, it is still much higher than in any large developed country.
Nominally, the Chinese GDP uprose by 100 times as compared to 1978, when the former head of the Communist Party of China Den Syaopin launched the market reforms. Before that the country was positioned at the end of the second ten of the largest world economies.
However, in 2005, the GDP of China was higher than the GDP of France and Great Britain, and in 2007 it was above Germany, occupying the 3rd position in the world. And in February, after the publication of the GDP data by Tokyo, it will be known if China is above Japan.
The majority of analysts consider that China now is the second largest economy in the world. In particular, the Bank of America-Merrill Lynch assumes that the GDP of China last year was by 380 billion US dollars higher than that of Japan.
