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China's GDP grows by 8pc on stimulus efforts

CHINA looks set to hit its full-year growth target of eight per cent after a surprisingly strong second quarter notable for a surge in investment driven by powerful fiscal and monetary stimulus.<br /><br />Annual gross domestic product growth accelerated in the second quarter to 7.9 per cent from 6.1 per cent in the first quarter, making China the best-performing major economy and reinforcing hopes that the world economy is pulling out of its deepest recession in 80 years.<br /><br />Economists had forecast 7.5 per cent growth, and several promptly responded to yesterday&rsquo;s figures by raising their projections for this year and next.<br /><br />&ldquo;We see clear upside risks to our current GDP growth forecast of 8.3 per cent for 2009,&rdquo; said Yu Song and Helen Qiao at Goldman Sachs.<br /><br />Tokyo shares hit a one-week high and shares elsewhere in Asia surged on the good news from China.