By DPA
Beijing : China’s economy grew by 11.4 percent in 2007, the highest since 1994, amid spiralling inflation and apparent difficulties in controlling investment, the government said Thursday.
The total value of China’s GDP in 2007 was estimated at 24.66 trillion yuan ($3.43 trillion), following growth of 11.1 percent in 2006, Xie Fuzhan, head of the National Bureau of Statistics said.
Xie said the government expected to maintain “steady” growth this year by trying to remedy “structural problems” and taking into account the possible effects of the development of the US economy.
“We will keep a close watch on developments in the US economy, on the one hand, and, on the other hand, we will strive to address institutional and structural problems in the Chinese economy, ” he said.
“The risk of overheating remained and inflationary pressure was still growing, Xie said.
The consumer price index rose by 4.8 percent last year, its highest annual increase since 1997, he said.
Driven by soaring prices of meat, grain and other foodstuff, the index increased by 6.5 percent year-on-year in December, after hitting a record 6.9 percent in November.
The government in November set its primary task for this year as preventing overheating and avoiding a “shift from structural price rises to evident inflation.”
It plans to spend more on social security, health care, education, housing and allowances for people with low incomes, state media said.