The Word Bank says China will lead the rebound of global economy

The World Bank says China will be the leader in the recovery of the world economy and it is very optimistic to see the future of Chinese economic development.

Zhang Cheng has the details.

During the year 2009, the World Bank twice raised the forecast for Chinese economic growth, initially from 6.5 percent to 7.5 and then up to 8.4 percent.

It says China has been the leader in using the fiscal stimulus package, which has contributed to the recovery. The package worked faster and stronger than expected.

Vinod Thomas, the Director-General of World Bank says China plays a critical part in the world economic recovery.

"The recovery has been fast. It has been stimulated strongly by the fiscal package. The sustainability of that stimulus is still fragile is a question, but China is providing the leadership globally to the recovery that only a year ago looked extremely tentative."

Thomas also says since the rebound is fragile, the fiscal package pushed by the government needs to be sustained on a safe side. He says to continue the fiscal stimulus without an eye on the quality of spending would be a mistake.

Talking about the recent bubbles which have been created within the Chinese property market, Thomas says inflation will not be a major concern for the Chinese government in 2010.

"I think monetary policies have tried to work with fiscal policies to stimulate the economy. But sooner or later, that needs to be watched in terms of the impact it could have on inflation. And the signals give to purchases and potential access bubble. I don't think that is the issue yet or now, but it is clear this is something to be watched but not necessarily in terms of a dramatic increase industry or dramatic pushing back on the monetary side yet."

For the year 2010, the World Bank has estimated the China's growth will be at 8.7 percent.

Zhang Cheng, CRI news.