The Chinese economy is likely to enter a full-recovery stage in March next year, Beijing Daily reported today, quoting a Shanghai economist.

The recovery will be not only the result of China's effective economic policies, but of an increased demand in the fashion and fad market, said Shen Hanyao, president of the Shanghai Research Institute of Economic Development.

Shen based his "audacious prediction" on the tremendous sales increase of consumer goods during the seven-day holidays, including two weekends, around the National Day on October 1, the paper noted.

Many department store and supermarket owners in China are already nostalgic over the long holidays when their stores were crowded with unprecedented numbers of shoppers.

The people in China are now getting ready for the New Year's Day and the traditional Spring Festival holiday season in early February new year, when they will have longer vacations and more time to buy, Shen said.

The current economic growth has been powered by the unfailing engine of the fashion and fad industries including clothing, cosmetology, sports and body-building, health food, cafes and bars, tea houses, recreational tourism, new townhouses, and many kinds of cultural consumption, he said.

New fads continue to pop up, spurring the economy today, he said, citing computers, the Internet, and e-commerce.

With these new developments, China's economy is entering a new era, he said.