World Bank cuts East Asia growth forecast as Chinese economy slows
2012-10-08 17:57:10
The World Bank has slashed growth estimates for East Asia and the Pacific region as the Chinese economy struggles on weak global and domestic demand.
In its East Asia and Pacific Economic Data Monitor, the financial institution says the growth of East Asia and Pacific economies may decline to 7.2 percent this year from 8.2 percent in 2011, before picking up to 7.6 percent in 2013.
According to the report, weakening exports and investments will pull back China's economic growth to 7.7 in 2012 from 9.1 percent in the previous year. Spending plans announced by Chinese regional governments could also be hit by funding constraints.
However the country's economy may recover to 8.1 percent growth in 2013 as the impact of the financial stimuli becomes more visible.
The bank had forecast a GDP rate of 8.2 percent in 2012 and 8.6 percent in 2013 for China earlier this year.