World Bank Raises China Growth Forecasts
In its quarterly report, the World Bank has adjusted its growth outlook for China. From the Washington Post:
The bank raised its 2010 growth outlook from 9.5 percent to 10 percent and its growth outlook for next year from 8.5 percent to 8.7 percent. Growth eased in the third quarter to 9.6 percent from 10.3 percent the previous quarter as Beijing tried to steer it to a more manageable level.
“Growth is likely to moderate somewhat more in 2011 and the medium term to a still robust pace,” the bank said.
Despite a largely upbeat outlook, the bank said Beijing needs to do more to boost domestic demand and cut reliance on exports and investment. Communist leaders have announced that goal repeatedly but private sector analysts say they have done little to shift emphasis to consumer spending and service industries instead of manufacturing and construction.
“The need to rebalance to more domestic demand-led, service sector-oriented growth seems stronger now than five years ago, in part because the international environment is less favorable,” the bank said. “Rebalancing will not happen by itself – it will require significant policy adjustment.”