Underscored by the massive stimulus program, the Chinese economy is expected to bottom out by the middle of 2009 this year, the World Bank said in a report on Tuesday.
In its latest half-yearly assessment of the economies in the Pacific Region, the bank said there are signs that China, the strongest economy in the region, is beginning to turn the corner. It earlier forecast China's economic growth at 6.5 percent.
A recovery in China is likely to begin this year and continue in 2010 - potentially contributing to the region's stabilization, and perhaps recovery. But with China still heavily reliant on exports to world markets that continue to contract, the bank warns that a truly sustainable recovery in the East Asia and Pacific Region will ultimately depend on developments in the developed economies.
For the whole of East Asia, the bank forecast a GDP growth of 5.4 percent in 2009, down from 8 percent in 2008. Weaker growth will slow the pace of poverty reduction in the East Asia and Pacific Region, with 10 million more people projected to remain in poverty compared with the bank's earlier forecast made in 2008.