World Bank expects China's economic growth to bounce back to 8.4 pct in 2013

SINGAPORE, Dec. 19 (Xinhua) -- China's economic growth is expected to bounce back to 8.4 percent next year as "recovery has set in the final months" of this year, the World Bank said in a report on Wednesday.

The Chinese economy next year is expected to be "fueled by fiscal stimulus and the faster implementation of large investment projects," it said in the latest East Asia and Pacific Economic Update.

The report also highlighted risks to the economies in the region, including capital inflows rising above what can be absorbed by productive investments as monetary easing continues in the G3 economies of the United States, Europe and Japan.

GROWTH FORECASTS RAISED

The report projected a growth of 7.9 percent for China this year, which is 1.4 percentage point lower than last year's 9.3 percent and the lowest since 1999. Weak exports and the tightening measures to cool off the housing sector slowed down China's economy this year, it said.

Nevertheless, this represents an improvement from the World Bank's forecast of 7.7 percent for China released in October this year. The forecast of 8.4 percent for 2013 is also raised by 0.3 percentage point.

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