March 17, 2010 8:24 PM

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World Bank raises economic forecast for China

The World Bank has raised its 2010 economic growth forecast for China to 9.5 per cent from 9 per cent. It said consumption by both businesses and households would grow strongly, even though government stimulus measures were being pared back. <br/><br/>But the bank warned that Beijing needed to cool inflation and try to cut the risk of a bubble in property prices. It urged China to let its currency appreciate to contain prices and to stop the economy overheating. <br/><br/>In a quarterly update the World Bank said strengthening the exchange rate can help reduce inflationary pressures and rebalance the economy.<br/>

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