CRI听力: Experts: Growth for China, Rebalancing Growth Needed

Previously, the World Bank revised its projection for China's GDP growth from 6.5 percent in the first quarter to 7.2 in the second quarter.

Louis Kuijs, from the World Bank's Beijing office, is the lead author of the Bank's China Quarterly Update.

"Because of its larger-than-expected stimulus package, China's GDP growth target, which has been discussed such a lot of times throughout this year, now seems quite easy to achieve."

The World Bank report attributed large-scale fiscal and monetary stimulus as the main supporting factor for the recovery of China's economy.

Although China has been hit hard during the global recession, the Chinese government has been able to offset much of the negative effects through huge stimulus efforts, which have generated greater demand in the real economy.

"These policy efforts, together with a maintenance of confidence of people and businesses of this economy has meant that both income and consumption growth have kept up very nicely this year."

Experts say the situation in 2010 will remain challenging. World markets are recovering slowly and a sharp resurgence in China's export-oriented manufacturing sectors cannot be expected. The large-scale government stimulus package is likely to dwindle.

Louis Kuijs suggests a number of solutions specifically aimed towards helping the Chinese economy. (www.hxen.net)

"Structural reforms to unleash more growth and competition in the service sector and structural reforms to stimulate more successful, more permanent migration are two areas where more progress would be very suitable to China's growth and will help to rebalance growth."

Looking from a wider perspective, the consolidation of China's recovery from the impact of the global recession is also encouraging for the rest of the world.

Developing countries in East Asia, excluding China, Indonesia and Vietnam, are projected to grow at merely around 1 percent in 2009, according to the World Bank's latest East Asia and Pacific Update, released on the same day.

Larry Chen, CRI news.