Chinese growth at highest level since 2007

Chinese output roared ahead at its fastest pace for three years, official figures from the world’s third-biggest economy showed today.

The year-on-year growth of 11.9% in the first quarter of 2010 was flattered by a weak beginning to 2009 but beat expectations and represented the strongest performance since 2007.

The growth has fuelled concerns the Chinese economy is overheating and Beijing is considering a real estate tax to cool down the rampant property market.

While Chinese inflation is relatively low thanks to lower food prices, the signs of a property bubble were shown by a 35.1% year-on-year hike in real estate investment in the figures from the country’s National Bureau of Statistics.

“China’s inflation problem is not a Consumer Prices Index problem, but a property price problem,” ING Bank’s Tim Condon said.