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China's economy expected to rise 8.4% in 2009: World Bank

0 CommentsPrint E-mail Shanghai Daily, November 4, 2009
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The World Bank on Wednesday raised China's economic growth forecast for this year and projected sustainable and robust growth in 2010.

China's gross domestic product would increase 8.4 percent this year, making the country's goal of 8 percent within reach, the Washington-based lender said in its latest update on China's economy.

In June, the bank raised its forecast of China's economic growth rate in 2009 to 7.2 percent from its earlier forecast of 6.5 percent.

Ardo Hansson, the bank's lead economist for China, attributed the possible faster growth to the Chinese government's massive fiscal and monetary stimulus.

China registered an economic growth rate of 8.9 percent in the third quarter and the figure for the first nine months stood at 7.7 percent, according to the National bureau of Statistics in October.

The report said China would see robust growth continue in 2010, and rising exports would help drive growth.

Hansson said China's economy would rely more on domestic consumption and a more flexible exchange rate policy should be worked out as the U.S. currency would continue weakening.

The bank advised China put more emphasis on consumption and services rather than investment and industry with an aim of achieving balanced and sustainable economic development.

Conditions were not yet ripe for major tightening, but, in the context of abundant liquidity, risks of asset price bubbles and misallocation of resources did exist, and the government should be well prepared for them, said Louis Kuijs, the bank's senior economist in Beijing.

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