Th World Bank announced today that China needs to rebalance its economy in the midst of the global financial crisis by focusing more on services and consumption. Bloomberg reports:
“Additional measures are necessary to make headway with rebalancing the pattern of growth,” the Washington-based lender said today. Steps should include extra spending on health, education and social welfare and raising energy and resource prices, it said.
The World Bank cut its forecast for China’s economic growth next year to 7.5 percent from 9.2 percent in the previous quarterly report after the global financial crisis deepened. More than half of the expansion will come from “government-influenced spending,” after the State Council this month announced measures including infrastructure projects, the report said.
Read the World Bank report here.