China's GDP growth is projected to average 10.5 percent in 2010 and 9.6 percent in 2011, mainly driven by domestic demand, according to the IMF's biannual World Economic Outlook (WEO) report released on October 6.

"The slight moderation in recent activity is expected to continue through 2011 in light of tighter quantitative limits on credit growth, measures to cool off the property market and limit bank exposure to this, and the planned unwinding of fiscal stimulus in 2011," the WEO stated.

The WEO also said this year's sustained growth in retail sales and industrial production confirms that private sector activity has advanced beyond the initial boost from the government's stimulus.

"On average, from 2010-11, private domestic demand is poised to contribute two thirds of near term growth, and government activity about one third, whereas the contribution from net exports will be closer to zero," said the WEO.