The Chinese economy grew by 9.2% in 2009. In the first quarter of 2010, GDP growth accelerated to 11.9%, supported both by domestic demand and a recovery in exports. In subsequent quarters of 2010, GDP grew by 10.3%, 9.6% and 9.8% respectively, resulting in an average growth of 10.3% for 2010. In the first quarter of 2011, real GDP grew by 9.7%.
As the Chinese economy revived in the second half of 2009, measures have been taken to minimize the chance of inflation and economic overheating. The People’s Bank of China (PBOC) raised the reserve requirement ratio six times in 2010. So far in 2011, the PBOC has raised the reserve requirement ratio for five times with the latest increase effective on 18 May 2011. The reserve requirement ratio for large commercial banks reached 21%. The PBOC also raised the base lending rate twice on 9 February and 6 April of 2011.
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