According to the State Council Development Research Centre (SCDRC), China’s economy is expected to grow by +9.5% in 2010 as real estate investment buoys growth and inflation remains mild.

The report, which was published in the Chinese-language China Economic Times, stated that the external (economic) environment would remain quite grim in 2010, but that it’s unlikely to deteriorate any further and the CPI inflation index was likely to stay below 3%.

The report stated: ‘Against a backdrop of ample production and supplies, we forecast that in 2010 there will not be marked inflation.’

The report supports Chinese officials and many experts’ beliefs that the countrys economy can maintain its momentum into 2010, overcoming worries about inflation, investment policy and a heady housing market. Especially after the countrys 4 trillion yuan stimulus package, complemented by a record surge in bank lending, propelled the economy to 8.9% year-on-year growth in Q3 2009.

Recently, Premier Wen Jiabao gave a cautious outlook for the nations economy in 2010, saying it was too early to wind down Government stimulus spending but that officials needed to be vigilant about surging property prices and incipient inflation.