China's economy is expected to grow by 10 percent in 2009 despite the impact of the financial crisis and global economic downturn, a researcher with the country's Cabinet said.
Workers set up scaffoldings at a construction site in Shanghai November 3, 2008. China's economy is expected to grow by 10 percent in 2009 despite the impact of the financial crisis and global economic downturn, a researcher with the country's Cabinet said. [Agencies]
"Although dim world economic situation has led to weak overseas demand, domestic consumption and investments, vast development potential decided the country's economy will grow at fast paces," said Zhang Liqun, researcher from the Development Research Center of the State Council.
He forecasted China's economic growth would accelerate largely at the second half of next year.
Zhang said his remarks were based on the country's huge domestic consumption, and investment potentials; sufficient fund, technology, labor and social security, and the government's gradually mature macro-economic control measures.
"Personal income continues to increase as millions of migrant workers flow into the city to get their lives improved. Enlarging demand for houses and autos will form huge and lasting consuming power," he said.
"However, domestic enterprises need to accelerate their paces in upgrading business structure, in a bid to better cope with severe world economic situation," he said.
China's gross domestic product (GDP) grew to 20.16 trillion yuan ($2.96 trillion) in the first three quarters of this year, up 9.9 percent from the same period of last year. The growth rate was 2.3 percentage points lower than the same period of last year.
In addition, Zhang expected the country's consumer price index, or the main inflation gauge, to increase by three percent in 2009 year on year. The index hit a record of 8.7 percent in February, and went up seven percent in the first nine months, far high from the government's aim of 4.8 percent.