The World Bank upgraded its 2010 growth forecast for China by half a percentage point to 10%, but said that Beijing should increase interest rates further to contain inflationary pressure, the Financial Times reported. The bank said in its quarterly report on China that the country’s trade surplus has rebounded sharply and would likely continue to grow. It predicts a surplus of US$247 billion in 2010, US$273 billion in 2011 and US$314 billion in 2012. This will place additional pressure on Beijing at next week’s G20 summit in South Korea. Earlier this year, China said the drop in its trade surplus indicated the economy was already rebalancing and that substantial exchange rate reform was unnecessary. The World Bank observed that China has made only “limited progress” in rebalancing its economy towards domestic consumption. It said that boosting the private sector, opening up the services sector and improving energy efficiency should figure strongly in the next five-year plan.