Economic growth in China is projected to slow this year and next year, with the world’s No. 2 economy expected to weigh on overall growth in developing Asia, the Asian Development Bank said Wednesday.
The ADB’s Asian Development Outlook 2016 said China, whose gross domestic product grew 6.9 percent last year, will see smaller expansions of 6.5 percent this year and 6.3 percent in 2017, owing to factors such as reduced investment in industries with excess capacity and emerging labor shortages.
“Simulations estimate that the drop in (China’s) growth may have shaved as much as 0.3 percent point from developing Asia’s outlook,” the report said. “(China’s) effect is largely centered on Asia, reflecting strong regional trade and production links.”
The regional bank’s latest economic publication comes after China said in early March that it will aim to realize average annual growth at 6.5 percent or above in the five years through 2020.