Mid-year rebound forecast

The government's $586-billion stimulus package may be strong enough to drive the economy to an early rebound in the middle of this year, the World Bank said yesterday, adding a caveat that a full recovery ultimately depends on developments in the advanced economies.

"Fueled largely by the huge economic stimulus package, a recovery in China is likely to begin this year and take full hold in 2010, contributing to the region's stabilization," the bank said in its latest semi-annual report on the economic health of East Asia and the Pacific region.

"A wide range of economic indicators in China are improving," indicating that a recovery is underway, said Vikram Nehru, the World Bank's chief economist for the East Asia and Pacific region.