China's economic recovery is gaining speed and the growth rate is expected to hit 9 percent in the third quarter, economists and analysts observed.

Q3 GDP expected to grow 9 percent

"China's economic stimulus plan has produced positive effects," said Zhao Jinping, a researcher with the Development Research Center of the State Council, or Cabinet.

He expected the country's gross domestic product (GDP) in the third quarter to rise 9 percent from a year earlier, up from 7.9 percent for the second quarter and 7.1 percent for the first half year.

"With the recovery of the world economy and trade environment, foreign trade, although still weak, will play a less negative role in the country's economy," Zhao said.

According to the General Administration of Customs, China's foreign trade continued to fall in September, but the rate of decline slowed. The total value of imports and exports for September was US$218.94 billion, down 10.1 percent from the same month last year, but up 14.2 percent from August.

"China's economic growth is very likely to exceed 9 percent. The strong rebound was based on the relatively low basis in the third quarter of last year," said Wang Tongsan, a senior researcher with Chinese Academy of Social Sciences, the government's top think-tank.

Zhuang Jian, a senior economist with the Asian Development Bank, gave a relatively prudent forecast, but his estimate was also between 8.5 and 9 percent. He expected an even faster economic growth rate in the fourth quarter.

"The accelerating growth was propped up by China's proactive fiscal policy and moderately loose monetary policy. China's economy is recovering at a speed not seen in other countries," Zhuang said.

Several institutions have also painted a rosy outlook for China's economic growth in the third quarter.

According to a recent report by the Bank of Communications, although China's consumer price index (CPI) and producer price index (PPI) will continue to go down in the third quarter, the decline will be narrowed and the country's GDP growth rate is expected to reach 9 percent.

Forecast from the US investment bank Goldman Sachs is even bolder. The bank expected a close to 9.5 percent GDP growth for China in the third quarter.

It also predicted China's real economy would keep the momentum for recovery and the country was to see an end to deflation.

"Although it is still too early to draw the conclusion that China has steered itself out of the crisis, the momentum remains strong, and the four-trillion yuan (US$585 billion) stimulus plan will continue to play a crucial role in stimulating consumption and enhancing infrastructure," Zhuang Jian said.