According to the International Monetary Fund, powered by strong domestic demand, China economy is expected to grow by 10%in 2010.
The IMF in its latest World Economic Outlook report said "In China, GDP growth exceeded the government 8% target in 2009 and is expected to be close to 10% in both 2010 and 2011. What has been so far mainly a publicly driven growth path, built on infrastructure investment, is expected to turn toward stronger private consumption and investment."
The IMF said "Boosting domestic consumption will be a priority in China, through improved access to finance for small enterprises and households and stronger corporate governance and social safety nets to reduce precautionary saving."
According to the report, in which the IMF said Asia GDP is projected to grow by 7% in both 2010 and 2011, the strength in final domestic demand in China is expected to have positive spillovers for other Asian economies, particularly exporters of commodities and capital goods.
In the report, the IMF said "the global recovery has evolved better than expected, with activity recovering at varying speeds, tepidly in many advanced economies but solidly in most emerging and developing economies."
The IMF said the world economy, which declined by 0.6% in 2009 will recover gradually in 2010 and 2011, growing by 4.2% and 4.3% respectively.