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We’re reassured by China reforms: World Bank

Reforms unveiled by Beijing are comprehensive and a reassuring sign from the world's second-largest economy, although it could take several months to make a full assessment, the World Bank's chief financial officer told CNBC.

"We were very interested in the comprehensive review and of course details need to be worked out and it will take several months to understand the full picture," Bertrand Badre, told CNBC Asia's "Squawk Box" on Wednesday.

"We still think that China, while transitioning from investment-led growth to consumption-led growth can grow around 7.5-7.7 percent," he added.

China last month unveiled details of the long-term economic reforms agreed to at a key meeting of the country's top leaders. Beijing said it would relax the controversial one-child policy and the system of household registration, which analysts say is a crucial step towards liberalizing the labor market.

(Read more: China's economic reforms: What you need to know)

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The World Bank expects China's economy to grow 7.5 percent this year. China's economy grew 7.7 percent last year and the country has a 2013 growth target of 7.5 percent.

Asked whether economic growth would be much lower if credit growth in China is slowed further, Badre said the World Bank's forecasts were appropriate.

(Read more: China's economic growth more like 4%: Marc Faber)

High credit growth has been cited by economists as one of the main risks facing the world's second biggest economy. Policy makers have taken some steps this year to address the problem such as allowing tighter liquidity conditions in money markets.

"I've been paid for many years to be paranoid about everything and prepare for the worst, but the reality is that it's never as bad one could expect," said Badre. "The leadership shown at the Third Plenum, the package presented and the ability of the government and central bank to face a changing environment is reassuring."

Badre said that the World Bank was positive about the outlook for East Asia's economy, although there was uncertainty ahead in the form of a likely scaling back of the Federal Reserve's massive monetary stimulus.

In October the World Bank lowered its forecasts for the region this year and next, urging governments to bolster financial stability ahead of monetary policy changes in developed economies. It expects East Asia to grow 7.2 percent next year, compared with a previous forecast of 7.6 percent.

(Read more: Can India and Indonesia tough out Fed tapering?)

"We still have a positive view on East Asia and this is still the engine of growth for the world, 40 percent of growth comes from the region so there's no reason to be panicking," Badre said. "That being said we all know there are changing conditions in the markets, and uncertainty coming from the U.S. in terms of monetary policy."

—By CNBC.Com's Dhara Ranasinghe; Follow her on Twitter @DharaCNBC

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