The World Bank raised its China growth forecast for 2010 from 9% to 9.5%, the AP reported. However, the report also warned about inflationary pressure and asset bubbles in real estate (although two of Hong Kong’s biggest real estate developers in the mainland said prices will not plunge this year). "China’s macro stance needs to be tighter than it was in 2009," said World Bank economist Louis Kuijs. Analysts expect Beijing to raise interest rates soon as it prepares to exit from the stimulus, but the government has said that lending will remain loose so long as the global outlook remains unclear. The bank said that trade and household consumption in China should continue to grow strongly as the stimulus is withdrawn.
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