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Chinese economy may keep 8% growth for two years: economist

(Xinhua)
Updated: 2009-09-07 11:25

The Chinese economy is experiencing a "V" shape recovery and the growth rate may reach 8 percent both this year and next year, Chinese economist Fan Gang said in Beijing on Saturday.

Fan, a monetary policy adviser to China's central bank, said at the 2009 annual conference of CEO in Beijing, that the economy will see a sustainable recovery and will be back to normal in 2011, according to a report of the China News Service.

He predicted that the real estate investment will increase by around 30 percent in 2010, which will add one percentage point to economic growth.

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Corporate investment is expected to grow prominently next year and as the global trade is warming up, Chinese export, which still enjoys the cost advantage, will recover.

"After the economy is back to normal in 2011, the government will adjust the macro-economic policy. But before that happens, the current stimulus policy should stay to sustain the recovery," he said.

Fan said people should adjust their expectation of economic growth and not regard recovery simply as a double-digit growth. A growth grate of 8 percent to 9 percent is sustainable growth.