World Bank Improves China’s Economic Forecast

The World Bank has boosted its economic growth forecast for China for 2010.The Washington-based institution predicts in a report released Wednesday that China’s economy will grow by 10 percent this year, up from an earlier estimate of 9.5 percent. The Bank also raises the country’s economic outlook for 2011 to 8.7 percent growth, up from 8.5 percent.The Bank says Beijing must prevent inflation by raising interest rates and allowing for a more flexible exchange rate. It says consumer inflation will stay around three percent this year and in 2011.The Bank warns that China’s rising trade and current account surpluses could lead to serious medium-term risks for both China and the global economy. It says they could also add to global trade and currency tensions – Voanews