The global economy is expected to do well this year, with China and India set to keep their pace of growth, economists said on Wednesday at the World Economic Forum in Davos, Switzerland.

"I think there is built-in stability in the world economic system," Jacob Frenkel, vice chairman of American International Group Inc., told a seminar at the forum.

"Many dire predictions have not taken place, not to say that a crisis may not occur," the economist said.

During the past year, the U.S. dollar had not collapsed, the Japanese yen had not strengthened dramatically, oil prices did not reach 100 (dollars) level, and protectionist sentiments had not materialized.

China, which is regarded as one of the main drivers of the world economy, kept its fast economic growth last year, with its GDP growth rate as high as around 10 percent.

Min Zhu, Vice-President of the Bank of China, said the faster-than-expected growth was achieved with prices under control. "China is doing very well," said Zhu.

The vice president believed China will do better in 2007.

Montek S. Ahluwalia, Deputy Chairman of the Indian Planning Commission, held positive views about the economic performance of India, another dynamic economy.

"We expect to have a growth rate around 8.3 percent. Though there are some signs of overheating, but not very high," Ahluwaliasaid.

Laura Tyson, dean of the London Business School and a former White House economic adviser, said the global economy was re-balancing, higher oil prices had been absorbed and there were promising signs of Chinese exchange rate flexibility.

"All those things suggest to my mind another Goldilocks year," she said.

But Tyson warned not to be too optimistic. "The big bad wolf isoften hiding in the forest and we economists can't see him," she said.

Source:Xinhua