Is China’s growth adding to global economic imbalances? Jim O’Neill, Bric godfather and chairman of Goldman Sachs Asset Management says no, such talk is “exaggerated”. He told a group of reporters on Wednesday that the country will be the biggest contributor to global GDP growth in the next decade.

His argument is backed up by a World Bank report released today that has raised the country’s 2010 GDP growth forecast to 10 per cent from an earlier 9.5 per cent. But not everyone is convinced that China’s leaders will get its economic rebalancing right.

“Whilst there is a lot of focus on so-called global imbalances, I personally believe the whole topic of global imbalances is an exaggerated problem,” O’Neill told reporters in Seoul on Wednesday. “Demand growth in the so-called emerging countries is dominating spending in the world.”