THE World Bank has raised its forecasts for developing economies in East Asia and the Pacific on the back of a strong rebound from China, but warned that a sustainable recovery was not yet taking place.

It said on Wednesday that the region will grow by 6.7 per cent this year and 7.8 per cent in 2010, reflecting the effects of China's large stimulus packages, but other countries in Asia still face much weaker growth.

In its semi-annual regional update, the World Bank lifted its forecast for China from 6.5 per cent to 8.4 per cent, while at the same time lowering growth forecasts for Malaysia and Cambodia.

For more The Straits Times stories, click here.