Bloomberg cited a State Council researcher said China’s economy may grow 10% next year as the “huge” potential of domestic consumption and investments counters the impact of a global slowdown.

Mr Zhang Liqun, a researcher with the Cabinet’s Development Research Center said the vast development potential” of the world’s most- populous nation will ensure a fast rate of expansion in 2009. “Domestic enterprises need to accelerate the pace in upgrading their business structures to better cope with a severe world economic situation.

China last week cut its benchmark interest rate by the most in 11 years and has unveiled a CNY 4 trillion stimulus plan to protect the economy from a global recession. Mr Zhang’s optimism isn’t shared by the World Bank, which on November 25th said the Chinese economy is expected to expand next year at the slowest pace in almost two decades.

Mr Zhang said consumer prices in China may increase by 3% in 2009, compared with 7% in the first nine months of this year.

Mr Fan Jianping chief economist at China’s State Information Center said “We expect growth more likely to be at a rate of between 8% and 9%. The stimulus package could contribute 1 to 2 percentage points, but the overall trend will be a down arrow.”