The Chinese economy expanded by 8.9 per cent in the last quarter of 2011 but growth slowed overall.
As a result, its economy in 2011 grew by 9.2 per cent compared to 10.4 per cent in 2010. Analysts believe that the Chinese Government is succeeding in its attempts to engineer a soft landing for its economy and the news was also ahead of their expectations of 8.7 per growth in the final quarter.
However, the Chinese Government is also wary of the challenges that lie ahead. China National Bureau of Statistics spokesman Ma Jiantang said: “In terms of the domestic and international situation, 2012 will be a year of complexity and challenges so we should be fully prepared.”
The Chinese Government remains concerned about slowing imports to its two biggest markets, the US and Europe, and it may now need to look at stimulating more demand domestically.
With the news more positive than expected, copper continued to rise. The metal was up to $8,227 (£5,377) in early trading from around the $8,000 mark yesterday.
Oil also increased on the news with Brent Crude trading at around $112.58.
However, cotton continues to trend downwards and is currently at 88.62.