China's economy is expected to grow 8 percent annually over the next five years, the Development Research Center of the State Council predicted.

Wang Mengkui, director of the center, said that by 2010, the gross domestic product (GDP) of the country would be 21 trillion yuan (2.6 trillion US dollars) with a per capita GDP of US$1,900.

According to Wang, the country's per capita GDP in 2005 will be 1,400 US dollars.

Wang said the next five years will be a "golden time" for China's economic development, citing strength in materials and technology, a large domestic market, an abundant labor force and a stable society as the major driving force for economic development.

Wang called unemployment, income gaps, social security problems and population transferring "hidden problems "threatening China's economic development.

China will continue to move towards industrialization and urbanization and try to blend into the world economic system gradually, he said.