China growth hits 10.2% in first quarter

CHINA'S economic growth accelerated to an estimated 10.2% in the first quarter, according to President Hu Jintao, exceeding expectations as manufacturing investment and exports surged.

The figure, given by President Hu in Beijing yesterday, is higher than every forecast in a Bloomberg survey of 25 economists and compares with 9.9% growth in the fourth quarter. The Bloomberg survey had a median estimate of 9.6%.

The acceleration may prompt the government to tighten lending and investment restrictions to prevent bad loans and overcapacity that could prompt a slowdown in China. Faster growth could intensify US calls for China to let its currency strengthen, as President Hu prepares to meet US President George Bush in Washington this week.