World Bank raises China GDP growth forecast

Consumption by both businesses and households would grow strongly, it says, even though government stimulus measures were being trimmed back. China's GDP grew by 8.7% in 2009. Beijing's official growth target for 2010 is 8%. However, the bank warns Beijing needs to cool inflation and try to prevent a bubble in property prices. Echoing sentiments from the US, it also urges China to let its currency appreciate to contain prices and to stop the economy overheating. "Strengthening the exchange rate can help reduce inflationary pressures and rebalance the economy," the World Bank sa...