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GDP seen to recover in 2010

CHINA'S economy will rebound next year and it will be one of the earliest countries worldwide to recover from the global financial crisis, an adviser to the central bank said yesterday.

The rebound next year will be due to government-driven investments, corporate investments and perhaps real estate investments, said Fan Gang, director of the National Economic Research Institute. China's gross domestic product growth rate will reach 8 to 9 percent next year, Fan said.

Other economies, including the United States and Europe, will require three to four years to rebound, Fan said at a forum in Shanghai.

China has poured 4 trillion yuan (US$586 billion) under a package to stimulate the economy, with a major focus on infrastructure investment. The government is targeting 8-percent GDP growth this year.

Fan said the government's biggest challenge is to encourage people to spend more as the country's high savings rate of 51 percent by the end of 2007 is several times that of Western countries.

Even in the tough environment, Chinese firms can invest more on IT and intelligent service systems in the medical, transport and infrastructure sectors to generate income over a long period, said Henry Chow, IBM China's chairman.


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