Expert: China 2010 economic prospect bright

As China's economy is set to rebound firmly this year, economists are already eyeing the fastest growing economy's outlook in 2010. While some fear the economic momentum may not continue when the temporary fiscal spending ends, others forecast another 8 percent annual growth.

Fan Gang is on the monetary policy committee of China's central bank. The noted economist is optimistic about China's 2010 macro-economic situation, and said so at a forum on Sunday.

Fan Gang, Economist of PBOC Monetary Policy Committee said "First of all, real estate investment is expected to increase significantly next year. Some new housing projects have started construction. Second, as the economy grows fast, overcapacity in some industries will be digested, and more investment will be put in place. Third, as the world economy stablizes, China's export will rebound dramatically. The combined effects of all these three aspects will offset the impact from the absence of a fiscal stimulus package. "

And Fan Gang says China doesn't need to worry much in terms of inflation. But bubbles in the housing and equity markets need much attention and supervision. That's what China has to learn from the financial crisis.

His assessment comes after the prediction by a State Council research center that China's new banking loans will maintain at 7 trillion yuan, strongly supporting the economic growth.