DEVELOPING east Asia’s expected growth was trimmed by the World Bank yesterday, down to 7.1 per cent from 7.5 per cent last year.
The organisation suggests China’s government will meet its 7.5 per cent growth target this year, but it had expected growth of 8.3 per cent in April. Predictions for Thailand’s growth were cut by the largest amount: the country is now expected to grow by only four per cent, 1.3 percentage points lower than was suggested in the spring. Mongolia is still thought to have the strongest growth, at 12.5 per cent.
Previous forecasts came before Federal Reserve chairman Ben Bernanke’s first discussion of tapering US asset purchases in June, which began a squeeze for emerging markets as some foreign investors began to withdraw.
Bert Hofman, the World Bank’s east Asia and Pacific chief economist commented: “The Federal Reserve’s decision to delay tapering stabilised markets for now, giving countries a second opportunity to take measures to lower risks from future volatility.”