CHINA'S economy will boom next year and almost two-thirds of business professionals said they expect higher profits, according to a survey released today.

More than half of the participants are confident or very confident about China's economic outlook for 2011. Just over 57.6 percent of respondents predicted gross domestic product will grow between 8 and 10 percent, according to the annual economic business sentiment survey compiled by CPA Australia. It interviewed 485 of its members in China who are in senior corporate positions.

About 64 percent of respondents said they expect their company will earn more profits next year while 20.8 percent said profitability would be the same as this year.

Domestic consumption will become a major driver for the economy next year, 35.3 percent of respondents agreed. A more independent growth pattern means uncertainties in Europe and the United States will have a smaller impact on China. Only 4.5 percent of respondents were concerned by external troubles, the survey showed.

"Clearly all the figures indicate that China's business leaders feel that the country can look forward to a robust and growing economy in 2011," said Lawrence Lau, president of CPA Australia Shanghai Committee.

But inflation will become a major headache for policymakers, the survey found.

When asked about possible future economic issues, 49.1 percent of respondents felt surging consumer prices posed the biggest potential obstacle to a healthy economy. It was followed by a property bubble and appreciation of the yuan.

But Lau dismissed such worries.

"With such a diverse and active economy, concerns about inflation are only natural," he said. "These are the sorts of issues that most political leaders in the West wish they had to deal with right now."

Respondents suggested that the best ways for the government to manage inflation are to control commodity prices, stabilize the rise of property prices and increase interest rates on savings.