World Bank Raises China GDP Forecast |
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June 18,2009
A sustainable recovery is not yet assured in China despite the government’s large fiscal stimulus package and Beijing may have little room for additional measures this year, the World Bank said yesterday.
A sustainable recovery is not yet assured in China despite the government’s large fiscal stimulus package and Beijing may have little room for additional measures this year, the World Bank said yesterday.
The bank raised its forecast for 2009 gross domestic product growth to 7.2 per cent, saying the apparent success of the government’s Rmb4,000bn stimulus package had improved the outlook from March when the bank predicted 6.5 per cent growth for the year.
“Government influenced investment will strongly support growth in 2009. However, there are limits to how much and how long China’s growth can diverge from global growth based on government influenced spending,” said Ardo Hansson, the World Bank’s lead economist for China. “It is too early to say a robust sustained recovery is on the way.”
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