BEIJING – China’s rapid growth is easing to a manageable pace and Beijing can do more to reconfigure its economy to promote domestic consumption and reduce reliance on trade, the World Bank said Wednesday.
Inflation that has risen steadily this year should level off and is unlikely to be a serious problem, the bank said in a quarterly China outlook.
The Washington-based bank raised its 2010 growth forecast from 9.5 percent to 10 percent and said the expansion should slow to 8.7 percent next year.
Growth eased to 9.6 percent in the three months ending in September, down from 10.3 percent the previous quarter, as the government imposed lending and investment curbs.
“We think that coming from this very strong growth, China should be able to ease into a more sustainable growth rate in the long term,” said the report’s main author, Louis Kuijs, at a news conference.
The outlook reflects China’s status as the first major economy to rebound from the global crisis on the strength of a flood of stimulus spending and bank lending. While Washington and others are trying to shore up growth, Beijing faces the challenge of cooling inflation and restoring normal conditions. Read Full Story from the Publisher.