World Bank raises forecast of economic growth in East Asia

As Asian countries take the lead to recover from the global financial crisis, the World Bank has raised its forecast of economic growth in East Asia. The bank also says it's time for these countries to consider when and how to withdraw their massive stimulus packages.

A quick rebound in consumer spending and government stimulus measures have prompted the World Bank to raise the growth forecast to 8.7 percent in 2010. This is almost an entire percentage point above the its prediction six months ago.

Vikram Nehru of World Bank said, "The update forecasts that even though East Asia slowed somewhat during 2009, it is coming roaring back. In fact, we expect growth this year to be about the same as it was pre-crisis."

But World Bank economists warn that slower growth in the global economy will mean less demand from developed countries and tighter global trade. Countries like Vietnam, the Philippines and Indonesia will need to focus on reforms and draw on the lessons learned from the global downturn. Over the medium term, growth in the region will depend on such reforms.