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Dec. 9 (Xinhua) -- China's gross domestic product (GDP) would increase 10 percent and its economy would continue to be a global outperformer in 2021 while Chinese central bank will start to hike lending rates next year, according to a recent research note by international economic research firm Capital Economics.
Chinese GDP would expand 10 percent in 2021, higher than the current market consensus of 7.9 percent, thanks to tailwind from fiscal stimulus, rebound in consumption and services, accelerating income growth and flattering base effects, said the note.
"Looking ahead, while the analyst consensus has turned more upbeat in recent months, we think there is still room for further upside surprises," said Julian Evans-Pritchard, senior China economist, and Mark Williams, chief Asia economist with Capital Economics.
Capital Economics forecasted that Chinese GDP would increase 2.5 percent in 2020 in comparison to analyst consensus of 2 percent.
The economists said China's domestic drivers of growth will stay strong in the near term while the recent strength of exports will start to unwind amid vaccine rollouts in developed markets.
