WB predicts 9.5% growth for China in 2010

Source: PressTV
http://www.presstv.ir/detail.aspx?id=121014&sectionid=3510213


The World Bank has increased its 2010 forecast of China's gross domestic product growth from 8.7 percent to 9.5 percent.

But the bank called on the world's second economy to tighten its monetary policy to control inflation expectations and possible bubbles in real estate prices.

"China's macro stance needs to be tighter than it was in 2009 to manage inflation expectations and contain the risk of a property bubble," World Bank economist Louis Kuijs told a news conference in Beijing.

"Inflation will not be taking off in a major way, but we do observe other macro economic risks that are in part an outcome of the stimulus," Kuijs said.

The Washington-based lender also predicted an 8.7 percent economic growth in 2011, the same rate China touched in 2009.

China says its inflation rate jumped to 2.7 percent in February from 1.5 percent a month ago.

Prime Minister Wen Jiabao said that inflation is a key challenge for China as it is trying to keep its economic recovery on track.