"With stronger domestic demand, China is very likely to see its economy facing better conditions this year and the government’s goal of 8 per cent growth will be more than achievable," said Wang Yuanhong, senior economist and head of the Economic Forecasting Department of the State Information Centre at a seminar organised by the All-China Journalists Association.

Wang, however, expressed concerns on whether the current economic recovery is sustainable.

Xu Lin, director general of the fiscal and financial affairs department at the National Development and Reform Commission, said China can achieve its goal of 8 per cent growth this year as it has enough resources to add to government spending if needed.

Many observers suspect this may be an overestimate. The World Bank estimates that a 6.5 per cent growth is more realistic and said the enthusiasm about an economic recovery in China may be "premature" as private investment lags behind government spending.

Most China watchers, however, feel that an 8 per cent growth is required to boost employment.

China will also have to identify new growth sectors apart from the saturated automobile and real estate markets, Wang said.