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Policymakers optimistic on economic recovery
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"After bottoming out in the fourth quarter, the economy still faces falling exports, increasing corporate losses and industrial overcapacity," Guo said in his article.

The economy is in a "critical" phase as the government's 4-trillion-yuan stimulus plan counters a collapse in trade, according to a June 21 statement by Premier Wen Jiabao.

The World Bank raised last week its 2009 growth forecast for China and advised policymakers to delay until 2010 any additional stimulus plans. The economy will expand 7.2 percent from a year earlier, up from a 6.5 percent forecast in March, the Washington-based bank said.

In contrast with China's prospects, the World Bank cut yesterday its forecast for the world economy, predicting a 2.9 percent contraction this year.

(China Daily June 24, 2009)

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