CHINA: The World Bank raised its forecast for Chinese growth this year
and called for a stronger yuan exchange rate as part of a tighter
monetary policy stance to contain inflation expectation and a potential
housing bubble. It said that the economy will grow by 9.5% in 2010 — up
from January’s 9.0% forecast — as net exports begin contributing again
to growth. Private sector investment, particularly in the real estate
industry, will also compensate for decelerating levels of the
government-directed investment that was prompted by the global financial
crisis in 2008. The pick-up in investment-driven growth in housing and
resurgent price pressures will require a shift away from the loose
policy stance which underpinned growth in 2009, it said.