China's fiscal stimulus package would help the country's economy grow faster than expected this year but it would be premature to say a sustained recovery was under way, the World Bank said on Thursday.
The World Bank raised its year-on-year gross domestic product growth forecast for China to 7.2 per cent for 2009, saying the apparent success of the government's Rmb4,000bn ($586bn) rescue package had improved the economy's outlook since March, when the bank predicted 6.5 per cent growth this year.
It warned, however, that Beijing might have little room for more stimulus measures.
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