Chinas gross domestic product (GDP) grewby 11.9 percent in Q1 2010 (see Chart 1), outstrippingthe 8.7 percent annual GDP growthachieved in 2009 and the 10.7 percent of Q42009. Chinese Premier Wen Jiabao stated inMarch that he expected 2010 to be a verydiffi cult year for the economy. The data forQ1 should, however, inspire quiet confidenceamong Chinese leaders, especially as Chinais this year expected to contribute a full thirdof global growth and is set to overtake Japanas the worlds second-largest economy.