An accelerating rebound

China's fastest economic expansion in nearly three years shows that the country is rebounding at an accelerating rate out of the worst global recession in decades.

While policymakers can breathe a sigh of relief as such a strong recovery has so far not brought about serious inflation, they have more reasons now to pay close attention to the risks of overheating.

Latest statistics indicate that China's gross domestic product (GDP) jumped 11.9 percent in the first quarter of this year over the same period last year. A relatively low base last year also made first quarter GDP growth look particularly high. Moreover, the consumer price index climbed by only 2.2 percent in the first quarter. Consumer price inflation dipped to 2.4 per cent last month from 2.7 per cent in February.