China economic growth forecast raised

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China is scheduled to released key economic figures of July starting next Monday. And just before that, some international financial institutions have raised the growth forecast for the country. But they also point out challenges still exist.

Standard Chartered says economic indexes are showing positive signs, so it's raised the growth forecast for both 2009 and 2010.

Many other financial institutions have also raised their forecast for China's economic growth.

The World Bank's forecast went up from 6.5 percent to 7.2 percent.

JP Morgan pushed the rate up twice from 7.2 percent to end at 8.4.

They believe that China's economic stimulus measures have taken effect, and the country's economic restructuring and consumption boom will become a key force to drive the world's economy.

But analysts also point out the challenges facing China. The country lacks private investment, and its small and medium sized firms are weak.

Financial institutions also say China's exports won't recover in the short term, but imports will increase a lot. They say domestic demand will boost the economy.