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UN report projects China economy to grow 8.8%

(Xinhua)
Updated: 2009-12-03 10:38

China's economic growth is projected to reach 8.8 percent in 2010, but will still fall short of pace according to pre-economic crisis levels, a new UN economic report said on Wednesday.

A preview of the annual economic report, which was launched at the UN Headquarters in New York, recognized that the global "economic revival" is a byproduct of the massive fiscal stimulus by governments worldwide toward the end of 2008.

According to the report, the world economy is expected to slowly rebound in 2010 where developing Asia would lead the pack in the strongest recovery.

India was also listed as another developing country where economic growth would take place, at a projected rate of 6.5 percent.

According to the report, China has experienced a surge in outward investment, which reached an estimated $150 billion in 2009. This was compared to the outflows of capital from emerging economies to other developing countries which had " moderated" in the last two years.

Citing that "investors in emerging economies recoiled along with those in developed countries," the report noted that China was "bucking the trend."

Warning that the economic recovery was "uneven and conditions for sustained growth remain fragile," the report urged " rebalancing global growth." This was needed, the report warned, in order to avoid the recurrence of another global imbalance.

The annual report which is scheduled to be released next month is produced by the UN Department of Economic and Social Affairs ( DESA), the UN Conference on Trade and Development (UNCTAD), and five UN regional commissions.