ABC

The World Bank has increased its 2009 growth forecast for China, from 7.2 per cent to 8.4 per cent.

It says East Asian economies are recovering from the world financial crisis but that this is almost entirely due to the strength of the Chinese economy.

A new World Bank report has also warned that China cannot rely so much on exports and investment to drive growth and, instead, needs to encourage more domestic spending.

In addition, the bank's chief economist in East Asia, Vikram Nehru, warned that poverty is likely to rise in this region with increased job losses and lower wages.