World Bank president Zoellick bullish on China, warns against protectionism

World Bank president Robert Zoellick said on Monday that though there were no clear indications as to where demand will come from to fuel global recovery, the present conditions did not warrant any additional economic stimulus.

Zoellick said during a question-and-answer session that the Chinese economy would likely throw up some positive surprises, adding that the performance of the Chinese economy would help pull the global economy out of recession.

Zoellick's comments came during a luncheon discussion session at the four-day International Economic Forum of the Americas in Montreal.

Elaborating on the China factor, he said though any forecast in the present environment would be hazardous, China had been able to launch the second-largest stimulus programme after the US and also build up its reserves. China, he said, was not the typical developing country.

According to Chinese leaders, the country would register a growth of 8 per cent this year.

Zoellick, however, cautioned that the possibility of all the credit that the Chinese banks are making available turning sour at a later stage was a risk to the growth of the Chinese economy.