China could grow 10pc in Q4
China's economy could grow by over 10 percent in the fourth quarter of 2009 spurred by massive investment and rising consumption, the state press said Sunday, citing a top government think tank.
"The economy is benefitting from fast-paced investment, record levels of consumption, rising exports to international markets and the stable resumption of industrial growth," China News Service cited Yu Bin, a top economist at the cabinet's State Council Developmental Research Centre, as saying.
Yu told a symposium that China's economy would witness growth of more than 10 percent year-on-year in the last three months of 2009, with full year growth of around 8.5 percent, the report said.
China could also maintain double-digit growth next year, Yu said, but the economy faced several challenges, including inflation linked to a vigorous government stimulus package and the appreciation of the yuan.
"If the Chinese yuan appreciates too fast, the huge numbers of export industries will suffer," Yu said.
"But a small appreciation will attract more capital inflows and speculation over the yuan could bring instability to financial markets. China is facing these two difficulties.”