The World Bank raises its forecasts for East Asian growth, largely as a result of an economic rebound in China. The World Bank has upped its 2009 growth forecast for China from 7.2% to 8.4%, but says the nation needs to encourage more consumer spending.
The Washington-based body also raised its projection of 2009 GDP growth in East Asia as a whole to 6.7% from 5.3%, thanks to China’s strong growth.
But it said growth in the region could be just 1% if China was excluded.
And it said China, boosted by a recent stimulus plan, must move away from an industry and investment-based economy.
“The rebound has yet to become a recovery.”
China ‘boosts East Asian growth’