Chinese growth is slowest in 10 years

The Chinese economy grew at its slowest rate for at least a decade in the first quarter of this year but there are signs the recovery is on its way.

Gross domestic product rose by 6.1% in the first three months of the year which economists said was the lowest rate since 1992 although comparisons are difficult because the Chinese government keeps revising earlier figures.

Li Xiaochao, spokesman of the National Bureau of Statistics, said: "We have achieved this 6.1% growth despite the deepening and spreading of the global economic crisis and the impact on the real economy. The national economy showed positive changes, with better performance than expected."

Industrial output rose 8.3% in March from a year earlier, up from a 3.8% growth rate in the first two months of the year, Li said. Investment in factories and other fixed assets soared 28.6% from a year earlier.

Beijing has launched a 4 trillion yuan (£390billion) stimulus package that aims to reduce reliance on weakening export trade by boosting domestic consumption.

Analysts said the data was in line with expectations and lent confidence to hopes that the recovery is starting.