By staff reporter Liu Zhijie

(Caijing.com.cn) China's gross domestic product is forecast to grow 9.4 percent in 2009 and 11.9 percent in 2010, Goldman Sachs macroeconomist Qiao Hong said on Monday.

The consumer price index could rise 2.6 percent in 2010, Qiao told a media briefing.
 
Goldman Sachs has estimated China's CPI will fall 0.9 percent year-on-year this year.

China's performance will be better than other countries because China realized the importance of expanding domestic demand, Jim O'Neill, head of global economic research at Goldman Sachs, said at the media briefing.

The global downturn meant an opportunity because it forced China to shake off its export-oriented strategy to boost growth and turn its attention to domestic demand, O'Neill said.

Goldman Sachs expected China's domestic demand to grow 13.3 percent year-on-year in 2009 and 13.6 percent in 2010.

China is less dependent on Western countries than it used to be, O'Neill said, adding that compared with major Western economies, China was less affected by the global financial crisis.

China will perform much better in the future, O'Neill said, adding he is very upbeat about China's development prospects.

China will soon surpass Japan to become the world's second-largest economy, O'Neill said, without giving a specific year.

O'Neill said China would become the world's biggest economy in 2027, with GDP reaching about US$21 trillion. Domestic consumption will contribute about US$9 to US$10 trillion, he added.

Domestic consumption, which now accounts for about 37 percent of China's GDP, has huge growth potential, O'Neill said.

China's economy expanded 7.7 percent in the first nine months, with GDP totaling 21.8 trillion yuan.

1 yuan = 14 U.S. cents

Full article in Chinese: http://www.caijing.com.cn/2009-11-02/110301541.html