Washington, Oct. 8: The World Bank has said that Asia’s growth is slowing more sharply than expected due to weak global demand, and warned that China faces the risk of a ‘more pronounced slowdown’ than expected.
The bank has cut its growth outlook for Asia to 7.2 percent this year, down from its May forecast of 7.6 percent.
It has also cut its growth outlook for China, the region’s biggest economy, to 7.7 percent from May’s 8.2 percent.
The bank said demand in key export markets has been hurt by the ‘lackluster’ US recovery and recession in Europe, The Age reports.
China’s growth has slowed largely due to government efforts to cool an overheated economy and inflation, and also because of weak global demand, the report said.
“China’s slowdown this year has been significant, and some fear it could still accelerate,” the World Bank said.
“Economic projections for EAP (East Asia and Pacific) are surrounded by considerable uncertainties, and a variety of risks continue to loom over the global and regional economy,” the World Bank said.
The bank, however, expects growth in China to pick up in 2013, helped by monetary policy measures introduced earlier this year. (ANI)