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China's Growth Speeds Up, but for How Long?
CNBC.com | January 18, 2013 | 01:15 AM EST

While China's gross domestic product (GDP) growth accelerated by a faster-than-expected 7.9 percent in the fourth quarter from a year ago, reconfirming a rebound in the world's second largest economy, analysts are questioning the sustainability of this uptick in economic activity.

Driven largely by government stimulus, China's growth momentum is unlikely to extend beyond the first half of the year, said experts.

"We haven't seen much organic growth in China, especially when it comes to external demand. It was mostly driven by government rather than private investment - government infrastructure spending saved Chinese growth," Xianfang Ren, senior economist at IHS told CNBC.

"The rebound by itself looks quite shaky. The trajectory of recovery is flat, mirroring the shallow downturn it's rebounding from," she said.

Ren said while impetus from the $150 billion infrastructure-focused stimulus package announced in September will boost the country's key construction sector in the first and second quarter, the launch of new projects will be constrained by the government's ability to finance them.

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