WB raises China GDP forecast 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 predicts 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 necessary.

This could potentially help other countries in the region that are unable to sustain their own stimulus measures.