The World Bank on June 18 revised up its forecast of China's economic growth rate in 2009 to 7.2 percent from its earlier forecast of 6.5 percent, local media reported.

The bank said its revision was based on China’s expansionary fiscal and monetary policies which it says have kept the economy growing respectably.

In its China Quarterly Update report released in Beijing the same day, WB projects the gross domestic product (GDP) growth of the world's third largest economy to reach 7.7 percent in 2010.

“Growth in China should remain respectable this year and next, although it is too early to say a robust sustained recovery is on the way,” Ardo Hansson, World Bank's Lead Economist for China was cited by Xinhua news agency as saying.

The Update, a regular assessment of the Chinese economy, finds that the fiscal stimulus is centered on the 4-trillion yuan (585 billion USD) stimulus plan while the monetary stimulus has led to a surge in new bank lending.

“Positive signs have emerged in the real estate sector. Consumption has held up well. Very weak exports have continued to be the main drag on growth, while import volumes have recovered in the second quarter this year as raw material imports rebounded,” said the report.

Earlier in March, the Asian Development Bank (ADB) forecast that China's economy might expand by 7 percent this year./.