World Bank downgrades China growth forecasts on lack of reform

 
Chris Papadopoullos
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THE WORLD Bank has downgraded its growth forecast for China as the country fails to make needed reforms.

“In China, growth will ease slightly to 7.4 per cent this year and 7.2 per cent in 2015, as the government seeks to put the economy on a more sustainable path with policies addressing financial vulnerabilities and structural constraints,” according to the report published yesterday.

The east Asia region as a whole remains vulnerable to a sharp slowdown in China, which, though unlikely to happen, could hit commodity producers, such as metal exporters in Mongolia and coal exporters in Indonesia.

“The best way for countries in the region to deal with these risks is to address vulnerabilities caused by past financial and fiscal policies, and complement these measures with structural reforms to enhance export competitiveness,” said Sudhir Shetty, economist at the World Bank.

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