World Bank increases its growth forecast for China and East Asia

City A.M. Reporter
THE WORLD Bank has raised its 2013 economic growth forecasts for China and developing East Asia, saying yesterday the region remains resilient despite the lacklustre performance of the global economy.

“For 2013, we expect the region to benefit from continued strong domestic demand and a mild global recovery that would nudge the contribution of net exports to growth back into positive territory, a trend projected to continue into 2014,” the World Bank said.

However, it warned of risks such as a sharp drop in investment growth in China that could shake global confidence.

Conversely, it said countries should keep an eye on its currency and inflation rates as overseas investors race to invest in Asia.

The World Bank said China was expected to expand by 8.4 per cent next year, fuelled by fiscal stimulus and the faster implementation of large investment projects. This is higher than the 8.1 per cent cited in October. For developing East Asia as a whole, next year's growth is expected to come in at 7.9 per cent, up from an earlier forecast of 7.6 per cent.