LOS ANGELES (MarketWatch) - The World Bank raised its 2009 economic estimate for China in a report released Thursday but added that the country wouldn't be able to recover its formerly breakneck pace of growth through government spending alone.
The world lender raised its Chinese gross domestic product forecast for the year to growth of 7.2%, up from its March projection of 6.5%.
"Growth in China should remain respectable this year and next, although it is too early to say a robust sustained recovery is on the way," said World Bank lead China economist Ardo Hansson.
The report said that much of the growth will be due to heavy stimulus spending by Beijing, with investment growth in the markets likely to lag.
But the report also said that China's GDP growth won't return to the rapid, double-digit pace it enjoyed before the financial crisis, or even the "high single digits," until the world economy recovers as a whole.
"There are limits to how much and how long China's growth can diverge from global growth based on government influenced spending," Hansson said. See full World Bank report on China.
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