MercoPress. South Atlantic News Agency

China's economy full steam ahead to a new record year

China's industrial output surged 16.7% in July compared to a year ago with strong showing in the iron ore, steel and coal sectors according to the National Bureau of Statistics.

But even when steel production was up 22.5% and iron ore 33.7%, the July increase is below June's 19.5%. However independent analysts anticipate the Chinese economy will keep the nerve breaking pace for the rest of the year.

The industrial production release follows on a new record trade surplus, last July, which reached 14.6 billion US dollars with exports soaring 22.6% and imports 19.7% compared to July 2005. Overseas sales in July totalled 80.3 billion US dollars and imports 65.7 billion. In June exports reached 61.4 billion and in the first half of this year, 508.9 billion US dollars with a 24.8% increase over the same period last year.

The World Bank in its latest release forecasts China's economic growth for 2006 at 10.4%, an increase from its previous estimate of 9.5%.

Anyhow Beijing officials are trying to tighten China's economy and prevent inflation and have since last April risen interest rates and made credit access more difficult.

As China expands economically, its quest for raw materials has expanded dramatically making her the world's biggest consumer of steel, copper, aluminum, cement, iron ore and zinc, besides becoming the second largest consumer of oil, behind United States.

China is also trying to increase domestic consumer spending with the purpose of reducing its dependence on external investment to drive economic growth. National Bureau of Statistics showed that July retail sales in Chile were 13.7% higher than a year ago pushed mainly by higher family incomes.