China's economic growth to exceed 10 per cent in 2010

China's economy will grow over 10 per cent in 2010, with a recovery in exports and rising consumption, according to a government researcher.

China's gross domestic product (GDP) expanded 8.7 per cent in 2009 and, with 10 per cent growth expected, China would certainly overtake Japan as the world's second-largest economy.

According to Chen Dongqi, deputy head of the macro economic research institute of the National Development and Reform Commission, the top economic planner, growth in industrial output this year would be 18 per cent or higher.

Chen told the overseas edition of the People's Daily that consumer inflation could be held within comfortable limits even in the face of inflationary risk that could mount in the next one or two years thanks to the plentiful supply of grains and durable goods.

Sounding a warning note Chen said the increasing bill for imported raw material as also the rising resource taxes burden would increase corporate costs, pushing up cost of production in the quarters ahead.
 
Chen discounted fears of a property bubble and said the tightening of measures in recent months would curb the acceleration in property prices.

He added that there were some structural bubbles in China's real estate market, but the key problem with the current property market was the accelerating housing price growth.

He said government's tight money policies put in place recently would gradually produce the desired results in curbing housing prices.

Recently, some economic experts had said that China may be in for another recession or even an economic collapse in the near future.

However, China's major economic indicators have been steadily recovering. The year-to-date growth of industrial value addition is up from 3.8 per cent last February to 20.7 per cent this February, Chen pointed out.

Also, the Manufacturing Purchasing Manager Index has remained above 50 per cent, showing an overall expanding economy.