China to drag down growth in developing Asia: WB

AFP, SINGAPORE: China’s economic slowdown will hit growth in developing East Asia and the Pacific from this year until at least 2018, the World Bank said Monday, warning of volatile global markets and urging caution.
Regional growth is forecast to slow from 6.5 percent in 2015 to 6.3 percent this year and 6.2 percent in 2017 and 2018, the bank said in its latest outlook.
However, Southeast Asian economies led by Vietnam and the Philippines are still expected to see healthy expansion, with both forecast to see growth rates of more than 6.0 percent, it said.
The bank said the regional outlook reflected China’s gradual shift to slower, more sustainable growth, expected at 6.7 percent this year and 6.5 percent in 2017 and 2018, from 6.9 percent in 2015.
China is in the midst of reforms as it moves to make domestic consumption a key economic growth driver instead of exports and as manufacturing gives way to services taking on a bigger role in the economy.
“Continued implementation of reforms should support the continued rebalancing of domestic demand,” the report said on the Chinese economy.
“In particular, growth in investment and industrial output will moderate, reflecting measures to contain local government debt, reduce excess industrial capacity and reorient fiscal stimulus toward social sectors.”
Victoria Kwakwa, incoming World Bank East Asia and Pacific vice president, said in a statement that the region’s developing countries accounted for “almost two-fifths of global growth” last year.
“The region has benefited from careful macroeconomic policies, including efforts to boost domestic revenue in some commodity-exporting countries. But sustaining growth amid challenging global conditions will require continued progress on structural reforms,” she said.

China to drag down growth in developing Asia: WB

AFP, SINGAPORE: Chinas economic slowdown will hit growth in developing East Asia and the Pacific from this year until at least 2018, the World Bank said Monday, warning of volatile global markets and urging caution. Regional growth is forecast to slow from 6.5 percent in 2015 to 6.3 percent this year and 6.2 percent in 2017 and 2018, the bank said in its latest outlook. However, Southeast Asian economies led by Vietnam and the Philippines are still expected to see healthy expansion, with both forecast to see growth rates of more than 6.0 percent, it said. The bank said the regional outlook reflected Chinas gradual shift to slower, more sustainable growth, expected at 6.7 percent this year and 6.5 percent in 2017 and 2018, from 6.9 percent in 2015. China is in the midst of reforms as it moves to make domestic consumption a key economic growth driver instead of exports and as manufacturing gives way to services taking on a bigger role in the economy. Continued implementation of reforms should support the continued rebalancing of domestic demand, the report said on the Chinese economy. In particular, growth in investment and industrial output will moderate, reflecting measures to contain local government debt, reduce excess industrial capacity and reorient fiscal stimulus toward social sectors. Victoria Kwakwa, incoming World Bank East Asia and Pacific vice president, said in a statement that the regions developing countries accounted for almost two-fifths of global growth last year. The region has benefited from careful macroeconomic policies, including efforts to boost domestic revenue in some commodity-exporting countries. But sustaining growth amid challenging global conditions will require continued progress on structural reforms, she said.