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China's Gross Domestic Product (GDP) is expected to grow 8.5-9.3 percent this year, the Shanghai Securities News reported, citing research reports from domestic institutions.

The Development Research Center of the State Council had the most optimistic expectations, forecasting GDP growth of 9.3 percent for 2005.



It also expects consumer price index to increase by four percent and fixed-asset investment up to 30.5 percent, according to the newspaper.



Zhang Liqun, the macro-economy researcher of the State Council-backed institute said the optimistic expectation is based on China's upgraded consumption structure, where auto and real estate are accounting for a bigger portion.



Besides, China's food, textile and home appliances products have started to gain more shares at international markets, which will also boost the country's economic growth, Zhang said.



The State Information Center, a research institute under the National Development and Reform Commission, forecast GDP growth of 8.5 percent this year, and 3.8 percent growth in CPI.



The Chinese Academy of Social Science expected GDP to increase by 8.7 percent in 2005 and CPI to grow 3.5 percent.



China's GDP grew 9.5 percent last year and the government has set a growth target of 8.5 percent for this year, much higher than the seven percent target set for previous years.