Premier Wen Jiabao mapped out a conservative target for this year's economic development covering the growth rate of gross domestic product (GDP), bank lending and the consumer price index in his government work report to the third session of the 11th National People's Congress (NPC) that concluded Sunday.

But the central government is still optimistic that the economy will continue its upward trend after the global economic recession, according to messages from the annual two sessions of the NPC, the top legislature, and the Chinese People's Political Consultative Conference (CPPCC) National Committee, the advisory body.

The numerous stimulus packages launched by the government since late 2008 to stem the economic downturn helped pull the country's economy back on track to rapid growth, as last year's 8.7 percent growth rate shows.

Investments, spending and exports, three major factors that drive a country's economy, are expected to rise from last year's momentum.

Due to the country's 4 trillion yuan (US$586 billion) investments plan, large-scale projects that started last year are expected to continue into this year and new projects could begin this year.

As a sector that has always expended much of China's fixed asset investments, the real estate market could experience a drop in home sales and prices following a series of policies and measures by the central and local governments aimed to curb home prices. But investments in the housing market are still expected to boom.

The system of selling homes prior to the opening day has long prevailed in China's real estate market. But government policies and measures will possibly produce delayed effects on the sector. Last year's stunning performances in home sales are likely to boost housing investments this year. Due to its role in driving investment to other industries, real estate is expected to boost the country's fixed asset investments and in turn boost economic growth.

(Xinhua News Agency March 16, 2010)