China's economy to grow faster in 2013

With recent economic data suggesting China's economy began to bottom out and rebound, experts and policy researchers become more optimistic about the prospect of the world's second largest economy.

Experts say China's new leadership may slightly loosen fiscal policy to spur investment and consumption, while maintaining stable monetary policy at the same time.

They predict that the current recovery will extend into the next year and the Chinese economy will pick up in 2013.

GROWTH PICKS UP

China's economy is likely to grow by 7.7 percent this year and will expand by around 8.5 percent in 2013, according to a report released by the National Academy of Economic Strategy under the Chinese Academy of Social Sciences.

The report owed the growth in 2013 to the nation's pro-growth policies and recovering external demand.

To stabilize growth, the Chinese government may step up investment in infrastructure and other projects concerning people's livelihoods, said the report.

Meanwhile, the country's urbanization level will increase by 0.8 to 1 percentage point each year in the coming years starting from 2013, according to the report.

"China should maintain the proactive fiscal policy and follow a moderately ease monetary policy in the future and realize the long-term development goal through policy adjustment and structural reforms," said Gao Peiyong, a senior researcher with the Chinese Academy of Social Sciences.

He added that efforts should be made to stimulate the potential economic growth rate and prevent undue price fluctuations via structural reforms, so as to create a sound environment for growth.

The higher growth rate was echoed by the Bank of China (BOC) which predicted in its report that China's GDP will grow 7.8 percent in 2012, slightly higher than the 7.5-percent target, and will accelerate to around 8 percent next year.