The World bank yesterday upgraded its forecast for China’s growth this year – from 7.2 percent to 8.4 percent and projected a slightly faster pace of expansion in the coming year.

The Washington-based bank was the latest major international financial institution to upgrade predictions – a reflection of its confidence in the country’s recovery.

But the World Bank sounded a note of caution, pointing out that a sustained recovery will need a shift in the economy to emphasize consumer spending, instead of industry and investment.

Eight months ago, when China’s exports were plunging sharply and its massive stimulus package had not yet had an impact, the World Bank projected this year’s growth would be 6.5 percent .  In June, it upgraded that forecast to 7.2 percent.

China Daily 5 November 2009

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