World Bank: China's GDP growth will slow to 8.7% this year

The world economy will continue to grow this year and next, but growth will slow and the risk of an impact on the recovery is still there, the World Bank said in its 2011 global Economic Outlook report yesterday, Shen Yu.　　China's economy is the engine of the 2010 global recovery, but in 2011 the growth rate will fall from 10% last year to 8.7%. From the regional point of view, the East Asia and Pacific region 2010 economic growth estimated at 9.3%, leading the global recovery. The World Bank's chief economist, Justin Yifu Lin, says China is no doubt a leading recovery in East Asia. China's imports grew 35% per cent last year, far faster than exports, helping to rebalance China's economy, he said.　　Lin is also optimistic about China's economic development as it is reported that the World Bank has been raising its economic forecasts for China last year, from 8.5% to 9.5% to the current 10%. But he also pointed out that imports and exports still accounted for 65% of China's total economy, China should continue to expand domestic demand to promote sustainable economic development. He expects China's economy to be under inflationary pressure in 2011 to grow at a slightly lower rate than last year, to 8.7%, in line with the general trend of the global economy in the future. In addition, the sharp rise in net international capital flows to developing countries ' equities and bond markets last year, while consolidating the recovery in most developing countries, could also pose risks that threaten the medium-term recovery, particularly in the event of sudden currency appreciation or asset bubbles. This year, Lin said, China should learn from the plight of other countries and avoid repeating the same mistakes.