NEW YORK (MarketWatch) -- Chinese government researchers are forecasting the nation's economy will grow by a robust 10% in 2009 despite the global economic downturn, state-run Xinhua news agency reported Sunday.
The Development Research Center -- which conducts economic analysis for China's Cabinet, the State Council -- believes economic growth will speed up largely during the second half of next year, Xinhua reported, citing researcher Zhang Liqun.
"Although [the] 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 a fast pace," Zhang Liqun was quoted as saying.
He pointed to the China's large domestic consumption, investment potential and available funding, as well as the government's ongoing macroeconomic control measures.
"Personal income continues to increase as millions of migrant workers flow into the city to [improve] their lives. Enlarging demand for houses and autos will form huge and lasting consuming power," the report quoted him as saying.
"However, domestic enterprises need to accelerate their pace in upgrading business structure, in a bid to better cope with severe world economic situation," he said.
China's gross domestic product growth was much slower than expected in the third quarter, posting a 9.0% rise, compared with 10.1% in the second quarter, according to data released in October by the National Bureau of Statistics. It marked the slowest GDP expansion since the second quarter of 2003 and missed consensus forecasts for a 9.5% rise. See full story.
Beijing has reacted to slowing growth with various stimulus measures, including a massive half-trillion-dollar package unveiled in early November. See full story.
Zhang also said China's consumer price index is expected to increase by 3% in 2009. The index hit a record of 8.7% percent in February but has since slowed. The government has set a consumer inflation target of 4.8%, Xinhua said.
