World Bank Cut Asian Growth Forecast

The World Bank has cut its growth forecast for the Asia Pacific region for this year and next, because of the risks posed from a sharp slowdown in China and raising US interest rates.
The bank now expects growth in developing East Asia and the Pacific to be 6.5% this year and 6.4% in 2016, down from an earlier forecast of 6.7%.

The latest estimate is even lower than growth of 6.8% last year.

Major development banks have recently revised lower their growth forecasts.

Last month, the Asian Development Bank said slowing growth in China would drag down the developing region’s growth to 5.8% this year.

The International Monetary Fund also flagged in September that slowing growth in the world’s second largest economy posed a threat to the global economy.

“Developing East Asia’s growth is expected to slow because of China’s economic rebalancing and the pace of the expected normalization of US policy interest rates,” said the World Bank’s regional chief economist Sudhir Shetty in a statement on Monday.

“If China’s growth were to slow further, the effects would be felt in the rest of the region, especially in countries linked to China through trade, investment and tourism.”

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.