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World Bank revises China's GDP forecast upward

Posted by Junichi Kawagoe on 18.2010 News Out of English Newspaper   0 comments   0 trackback
The World Bank has raised its forecast for China's GDP growth in 2010 to 9.5 percent.

In its latest report released on Wednesday, the World Bank says it increased its projection by 0.5 percentage points from its previous forecast in January.

The Bank attributes the increase to the recovery of China's exports against a backdrop of a strengthened global economy. It says real estate investment is also expected to remain active in the country.

In the report, the Bank also proposes the revaluation of China's currency, the yuan. It says high exchange rates will help ease inflationary pressures that may occur in China.

Regarding possible risks in the Chinese economy, the Bank cites an asset bubble that may be triggered by the government's easy-money policy, and the worsening financial situation among local governments.

The Bank says the Chinese government will need to steadily implement its economic policy. The policy aims at changing the course of the country's economy from an export and investment-orientated one to one based on domestic demand and consumption.

The chief economist at the World Bank Office in Beijing says the Chinese government needs to encourage personal spending by removing a sense of anxiety among people for their future by improving social security and education systems.

2010/03/18 07:54(JST)
(JST: UTC+9hrs.)
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