The World Bank is cautious about the global recovery and went so far as to warn that it may run out of steam later in the year.
The World Bank said in its report on Global Economic Prospects that global gross domestic product is expected to grow 2.7% this year and 3.2% in 2011, after declining 2.2% in 2009.
However, the report was cautious about growth prospects.
"Unless consumer demand and investment demand picks up, we expect growth rates in the course of 2010 will begin to slow," said Andrew Burns, lead author of the report.
The stimulus measures put in place by the Chinese government were among the most important in the world but they are beginning to wane. The stimulus may also be putting inflationary pressure on the Chinese economy fueled by easy money.
"We can already see signs of bubbles and signs of tension in the Chinese economy," Burns said.
Many stock markets were down on Wednesday after China moved to slow lending, and even more tightening from China may me ahead.
All governments will have to decide when to end their their stimulus measures.
"Getting that balance correct is going to be very tricky," Burns said.
