World Bank raises China GDP forecast

The World Bank has raised its forecast for China's economic growth this year, from 9.4 to 9.8 percent. Main reasons given for the 4-percentage-point-hike are strong domestic demand and sustained competitiveness in exports.

Just two months ago saw the World Bank actually lower its growth estimate for the country, from 9.6 to 9.4 percent, citing a slowdown in demand for exports. But the World Bank now says its revising its forecast on the back of new data showing stronger growth in the service sector. It's also added that it does not expect last month's quake in Sichuan to have much of an impact on the Chinese economy.

In fact, quite the reverse, reconstruction could actually boost growth in the months ahead. Meanwhile the Chinese government has set its own target for the year at 8 percent, despite last year's rather-above-target figure of 11.9 percent.