China has policy buffers to sustain growth: World Bank

The current stable job market and structural rebalancing pressure will push policymakers to tolerate the "new normal" growth rates of around 7 percent, the World Bank said.

"The 'new normal' growth rates reflect the government's desire to pursue structural reforms that would allow the country to maintain a fast-paced but more sustainable and equitable long-term growth", said Hofman.

Louis Kuijs, chief economist in China with the Royal Bank of Scotland, expects that China will unveil more measures to support growth this year as the leadership believes in the need for sufficient growth.

"China does not have a lot of space on the monetary side due to the rapid increase in leverage over the last six years," he said. "However, it would be better if the stimulus comes from pure fiscal policy measures, with government spending financed by bond issuance, especially central government bonds, as that is an underutilized lever."

He said that the central government should increase fiscal spending especially in areas like health, education and social security.

The World Bank report has forecast global growth to rise moderately to 3 percent in 2015 and average about 3.3 percent through 2017, influenced by soft commodity prices, persistently low interest rates, increasingly divergent monetary policies across major economies and weak world trade.

Developing countries may see a moderate acceleration of growth to 4.8 percent in 2015 and 5.4 percent by 2017.