WB raises China GDP growth to 8.4%

The World Bank has once again raised its forecast for Chinese growth this year and projected a slightly faster pace of expansion in 2010. It also says China does not need to embark on a major tightening policy at this stage.

The Word Bank forecasts that China's GDP will increase by 8.4 percent this year and 8.7 percent in 2010. The bank had already revised upwards its forecast in June from 6.5 percent to 7.2 percent. It says China's strong fiscal position could allow it to continue with a fiscal stimulus for several years if it needs to, potentially helping other countries in the region that are not able to sustain their own stimulus.