China's economic growth rests on US, Europe recovery
Thursday, 14 May 2009
WASHINGTON, May 13 (AFP): China may not be able to sustain its economic expansion in 2010 if there is no recovery particularly in the United States and Europe, a senior World Bank official said yesterday.
China posted growth of 6.1 per cent in the first quarter of 2009, down from 6.8 per cent in the final three months of 2008, underlining the impact the global crisis is having on the world's third-biggest economy.
"I think the key concern is if the rest of the world begins to recover, in particular Europe and the US, China's exports market returns, then there is a high probability that we get higher growth rates next year-that is the key determinant," said Jim Adams, World Bank's Vice-President for East Asia and Pacific region.
The World Bank in March slashed China's economic growth forecast to 6.5 per cent in 2009, well below the level the nation says it needs to keep enough people at work and to avoid social unrest.
The Washington-based development lender had cut sharply its 7.5 per cent forecast made in November, less than a week after Chinese Premier Wen Jiabao insisted that the economy would be able to achieve eight-per cent growth "with considerable effort."
"We still think that in light of recent numbers that 6.5 per cent, in spite of the slow start, is a realistic target for China," Adams told the annual meeting in Washington of the Pacific Economic Cooperation Council (PECC), a regional think tank.
China posted growth of 6.1 per cent in the first quarter of 2009, down from 6.8 per cent in the final three months of 2008, underlining the impact the global crisis is having on the world's third-biggest economy.
"I think the key concern is if the rest of the world begins to recover, in particular Europe and the US, China's exports market returns, then there is a high probability that we get higher growth rates next year-that is the key determinant," said Jim Adams, World Bank's Vice-President for East Asia and Pacific region.
The World Bank in March slashed China's economic growth forecast to 6.5 per cent in 2009, well below the level the nation says it needs to keep enough people at work and to avoid social unrest.
The Washington-based development lender had cut sharply its 7.5 per cent forecast made in November, less than a week after Chinese Premier Wen Jiabao insisted that the economy would be able to achieve eight-per cent growth "with considerable effort."
"We still think that in light of recent numbers that 6.5 per cent, in spite of the slow start, is a realistic target for China," Adams told the annual meeting in Washington of the Pacific Economic Cooperation Council (PECC), a regional think tank.