The United Nations Conference on Trade and Development (UNCTAD) says the situation of the global economy and the outlook for developing countries is brighter than a year ago, and China has played a vital role in the global recovery.

According to UNCTAD's newly released Trade and Development Report 2004, while the US economy has provided a strong demand stimulus to the rest of the world, several developing economies in Asia, in particular China, have been able to increase not only their imports, with strong spillover effects in economies in the Asia and Pacific region, but also their exports at double-digit rates.

UNCTAD says in 2003 and the beginning of 2004, China was a major engine of growth for most countries in East and South Asia.

UNCTAD forecasts that in 2004 rapid growth is likely to continue in East and South Asia, and particularly in the two largest economies, China and India.