The World Bank yesterday sharply raised its forecast for the expansion of China's sizzling economy this year to 10.4 per cent, up from 9.5 per cent. The bank said it expects Chinese export growth to rise even faster, jumping by 20.8 per cent for the year, while imports expand by 18.4 per cent.
The bank increased its growth forecast after China's government earlier reported second-quarter growth of 11.3 per cent, surpassing economists' projections and hitting its fastest rate in a decade.
The forecast was included in a quarterly World Bank report on China's economic performance.
The bank said China's current account balance, the broadest measure of its trade in goods and services, was expected to run a $220 billion (£116 billion) surplus this year.
The report comes amid efforts by Chinese leaders to slow down growth in segments of the economy. They worry a boom in construction and bank lending could ignite politically dangerous inflation and leave banks and companies dangerously high debts.