Flight of dragon: China GDP vs Business climate index graph

Mecklai Graph of The Day: The flight of dragon

China's economic growth accelerated for the first time in two years as government efforts to revive demand drove a rebound in industrial output, retail sales and the housing market. Gross domestic product rose 7.9 percent in the fourth quarter from a year earlier while the business climate index rose to 127.3.

People's bank of China has paused from its monetary easing since July after two interest-rate cuts and three reductions in lenders' reserve requirements starting in November 2011. At the same time, the government has accelerated investment-project approvals, trimmed fees for exporters and increased spending on infrastructure. The recovery adds to evidence that the global economy is improving, after U.S. data yesterday showed housing starts at a fouryear high, European bond yields receded from crisis levels and Japan announced a $116 billion stimulus. It now seems China is spearheading the global economic growth and investors will keenly track its story in times to come.

Below graph shows Chinese GDP and Business climate index yoy in 2012.

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