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China economy in 12pc growth spurt

CHINA has reported forecast-beating year-on-year growth in the first quarter of 11.9 per cent.

The rate of expansion – the fastest since 2007 – means that the country will be forced into tighter fiscal control to rein in inflation, according to analysts.

Goldman Sachs economist Yu Song said: "We think in absence of a dramatic fall in external demand, it is critical for the government to tighten policy more decisively than they have been doing in order to prevent overheating."

Property prices in the country jumped by 11 per cent in the year to March although the consumer price index only rose to 2.4 per cent – against forecasts of 2.6 per cent.