WB lifts China ’07 growth forecast to 11.3pc

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BEIJING, Sept 12 (AFP): The World Bank today raised its economic growth forecast for China this year to 11.3 per cent, while warning its growing trade surplus and inflation were the main threats to healthy growth.
In its latest quarterly update on China's economy, the World Bank raised its growth projection to 11.3 per cent from 10.4 per cent forecast three months earlier.
Economic growth next year is expected to slow to below 11 per cent, it added.
The World Bank's report said China's economic prospects remained sound, but rebalancing the growth pattern through further fiscal and structural policy measures remained major challenges.
China's soaring trade surplus is adding to excess liquidity and has helped push up asset prices, particularly the stock market, the report said, once again calling for a faster appreciation of the Chinese currency.
"The main macroeconomic task remains to contain the trade surplus, and a stronger real exchange rate is the most obvious tool," said Bert Hofman, the World Bank's lead economist for China.