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China's economic growth to exceed 10% in Q4: report

(Xinhua)
Updated: 2009-11-03 11:20

BEIJING: China's economic growth would exceed 10 percent in the fourth quarter due to climbing export orders and increasing domestic consumption, according to a report issued by China Construction Bank (CCB) Tuesday.

The report said China's full year economic growth would reach 8.3 percent, compared with Asian Bank's forecast of 8.2 percent in September and HSBC's 8.1 percent this week.

Related readings:  Quarterly economic growth picks up speed: vice premier  Issues for economic growth model  China shares up on optimistic prospect in economic growth  China is top contributor to world economic growth: NBS

As the economy rebounded, both investor and consumer confidence would rise in the fourth quarter,  which would further strengthen the economic recovery.

The National Bureau of Statistic said last week China's purchase management index rose to 55.2 percent in October, an increase of 0.9 percentage points from the previous month, indicating the economy was on an upward trend.

As developed countries showed more signs of economic recovery, China's exports would pick up with trade surplus expected to reach US$250 billion this year, said the report.

Automobile sales in the world's third-biggest economy broke 5 million mark in the first nine months due to tax cuts and stimulus measures, indicating China's domestic demand was expanding fast.

Though China's economic growth accelerated to 8.9 percent year on year in the third quarter, the fastest pace within a year, the economic recovery was not solid yet and there were still many uncertainties ahead.

The government should keep monetary policies relatively loose and avoid withdrawing stimulus measures too early, said the report.