China's gross domestic product (GDP) totalled 1.6784 trillion yuan (US$202.22 billion) in the first three months of 1999, representing a growth of 8.3 per cent, bureau spokesman Ye Zhen said at a news conference.

Attributing the impressive performance of the Chinese economy to a double-digit expansion in fixed-asset investment and a steady growth in consumer spending, Ye said exports, China's hitherto main engine of growth dwindled 7.9 per cent in the face of Asian financial crisis and sluggish demand in the Asia-Pacific region.

Fixed-asset investment during the January-March period expanded by 22.7 per cent year-on-year and the sales volume of consumer goods rose by 7.4 per cent during the same period, he said.

As government policy of increasing investment andstimulating domestic demand takes effect on China's economy, we are confident of achieving the set target of seven per cent GDP growth in 1999, Ye said.

Ye's optimism was echoed at another press conference where spokesman of State Development Planning Commission (SDPC) said economic recovery which began in third quarter of 1998 has continued in first quarter of 1999, represented by 8.3 per cent, higher than targeted 7 percent for this year.

Based on performance of the first quarter, we can expect a growth rate of eight per cent for first half of 1999 and that governments projected seven per cent growth rate for whole of 1999 is attainable, SDPC spokesman Zheng Xinli said.

Zheng pointed out that compared with the same period last year, investment in fixed assets rose by 22.7 per cent, while investment in agriculture, transportation and post and telecommunications and housing sectors grew 122.1 per cent, 46 per cent and 35.5 per cent, respectively.

The first quarter also saw a high growth rate and aremarkable improvement in economic efficiency in china's industrial sector, which witnessed a 10.1 per cent growth in industrial added value over an year earlier.

A particularly encouraging factor was in state-owned industrial sector, which recorded profit of 950 million yuan (US$114.46 million) in first two months of 1999, compared with loss of 5.46 billion yuan (US$657.83 million) in the same period of 1998.

Governments fiscal revenue increased by 26.1 per cent in first quarter to stand at 232.4 billion yuan (US$28 billion). Banks across the country extended new loans of 143.7 billion yuan, increase of 52.3 billion yuan, Zheng said.

China's foreign exchange reserves stood at US$146.63 billion by the end of march, an increase of 1.67 billion over the beginning of the year.