China's Economy to Grow 9.5Pct in 2010: World Bank

China's economy is likely to expand 9.5 percent in 2010, said the World Bank in its latest report.

China's economy is likely to expand 9.5 percent in 2010, said the World Bank in its latest China Quarterly Update released on Wednesday.

"We project GDP growth of 9.5 percent for 2010 and 8.5 percent for 2011, with risks both ways," said Ardo Hanson, Lead Economist for China with the World Bank.

"Growth should be less investment-driven this year and benefit from more favorable external trade, while consumption is likely to remain supported by a strong labor market," he told the press releasing of the report on Friday.

The external surplus should decline somewhat further this year. Inflation is likely to remain contained this year by the absence of price pressures globally while a wage-price spiral is not likely.

China's economy has continued to grow robustly, with some softening recently, the report says. The government-dominated investment has slowed down following last year's massive stimulus; however, it has been so far partly offset by strong real estate investment.

House hold consumption growth has held up well, reflecting a favorable labor market.

Export volumes have rebounded rapidly since the trough in 2009. But trade surplus has declined further due to a surging import and worsening trade situations.

The report also shows optimism on emerging market and the outlook of global economy despite concerns on financial risks existing in some high-income countries.