China's economy grew by a greater-than-expected 8.7% in 2009 - putting the country on course to overtake Japan as the world's second biggest economy.
The expansion in the country's economy accelerated as the year progressed, with growth in the fourth quarter increasing 10.7% compared to the equivalent period last year, said head of the National Bureau of Statistics Ma Jiantang.
With the release of Japan's GDP figures next month expected to reveal a contraction of around 6%, China is poised to become the world's second largest economy.
Ma Jiantang said after a turbulent 2009, China's economy was now moving in the right direction.
China's recovery comes on the back of the government's huge stimulus package, but with inflation picking up there are fears the economy could now be expanding too quickly.
Consumer prices increased by 1.9% in December from a year earlier, said Ma Jiantang.
Despite the better than expected figures, some economists have questioned the reliability of the economic data coming out of China.
Yesterday, the central bank instructed banks to restrict lending - a move which led the Dow Jones to plunge in early trading.
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