UN report: China leads world recovery

The world economy is on the track to recovery led by China, India, and other emerging economies according to a new report released by the United Nations in Bangkok. Wednesday's document also predicts that China will continue to pace global economic growth in 2010, with an expansion of 8.8 percent.

The World Economic Situation and Prospects 2010 report, just released by the UN, says the global economy started to show signs of recovery after the second quarter of 2009. The world economy grew by 2.2 percent last year, while East Asia's economy increased by 4.1 percent. Much of the East Asian rise is accounted for by China, where the nation's GDP expand 8.1 percent.

The report predicts that the world economy will grow by 2.4 percent this year, while East Asia will surpass all other regions to post an increase of 6.7 percent. An 8.8 percent rise is projected for China.

The document also says that China has become the world's biggest exporting country. In recent years, the nation has continued to expand its infrastructure construction, stimulate internal demand, and adopt easy monetary policies. As a result, the domestic employment market was not hit too hard by global financial crisis.

The report further stresses that the world economy still needs to deal with more challenges to fully recover. It suggests that economies should not pull back stimulus measures too soon. Otherwise, the recession will rebound. In addition, all countries should strengthen international cooperation to reform the global financial system.