China GDP forecast raised

Discussion in 'Economics' started by ASusilovic, Jun 18, 2009.

  1. BEIJING - MASSIVE policy stimulus should enable China to keep growing at a respectable rate this year and next, but a robust recovery is unlikely given the weak global environment and softness in non-government investment, the World Bank said on Thursday.

    In its quarterly update on the world's third-largest economy, the bank raised its forecast for gross domestic product growth this year to 7.2 per cent from the 6.5 per cent projected in its previous report in March.

    The bank welcomed an unfolding surge in government-influenced investment, triggered by Beijing's 4 trillion yuan (S$849 billion) stimulus package. And it said more domestic demand was helpful for the world economy.

    'However, it is unlikely to lead to a rapid, broad-based recovery in China, given the current global environment and the subdued short-term prospects for market-based investment.

    China's economic growth is unlikely to rebound to a high single-digit pace before the world economy recovers to solid growth,' it said.