China 2007 Q1 GDP growth about 11%

China's GDP growth in the first quarter is expected to accelerate to about 11 pct, due to rapid growth in consumption and exports, according to a research report released by the State Information Center (SIC) and published in the official China Securities Journal.

The SIC, affiliated with the State Council, or cabinet, previously forecast first quarter growth of 10.2 pct year-on-year.

The new projection, if realized, would make GDP growth in the first quarter the highest since the second quarter of 2006, when growth hit 11.5 pct.

It could also raise concerns in Chinese policymaking circles that the economy is again at risk of overheating despite a series of government administrative and policy measures to curb growth, suggesting additional action is necessary.

The official report said the upward adjustment in the forecast was based on new data from January and February.

Consumption growth has continued to accelerate while export growth remained strong, the SIC said. On the other hand, investment growth is falling back into a reasonable range and its structure is improving, it added.

Despite the rapid growth of the money supply and credit, consumer prices have remained 'normal', indicating the the economy can continue to grow rapidly without generating high inflation, the report added.