Beijing- The World Bank lowered its 2009 economic growth forecast for China from 9.2 per cent to 7.5 per cent Tuesday while welcoming the government's stimulus package but urging more rebalancing of the economy.

China's efforts to expand its domestic demand and stimulate the economy through infrastructure spending would be crucial to how it fares against the growing impact of the global financial crisis, the World Bank said in a quarterly report.

In early November, the government announced a 4-trillion-yuan (586-billion-dollar) package to finance 10 major programmes of infrastructure and other spending over the next two years.

"Our forecast for 2009, which sees GDP [gross domestic product] growth of around 7.5 per cent, has more than half of that coming from government-influenced spending," said senior economist Louis Kuijs, the report's main author.

The economic stimulus package was expected to have a "measurable impact on output in the short term," Kuijs told reporters.

"The emphasis will be on accelerating and increasing infrastructure and other investment but of a different nature than in the wake of the Asian crisis with many projects focusing on broad long-term development and improving living standards," David Dollar, the World Bank's China director, said of the government's economic plan while referring to the financial crisis that hit Asia a decade ago.

The report forecast a continuing slowdown in Chinese exports next year but said the new economic stimulus policies give China a "good opportunity to rebalance its economy" in line with its long-term objectives.

"The government can use the opportunity of the fiscal stimulus package to take more rebalancing measures, including on energy and resource pricing; health, education, and the social safety net; financial sector reform; and institutional reforms," the World Bank said.

The economic package is designed to finance 10 major programmes including transportation, rural projects, low-cost housing, environmental projects and post-disaster reconstruction.

China reported 9-per-cent growth in its estimated gross domestic product for July to September, down from 10.6 per cent in the first quarter and 10.1 per cent in the second quarter of this year.

It reported growth of 11.9 per cent in estimated GDP last year, its fastest growth since 1994. (dpa)