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.”