The World Bank trimmed its 2015-2016 growth forecast for developing East Asia, citing a continued slowdown China as its policymakers work to address financial vulnerabilities and shift to a more sustainable growth path.
The region is forecast to grow 6.7 percent in both 2015 and 2016, down from forecasts of 6.9 percent and 6.8 percent in October, the Washington-based lender said in its East Asia and Pacific Economic Update published on Monday. Growth in 2014 had been 6.9 percent. China is projected to expand 7.1 percent in 2015 and 7.0 percent in 2016, down from earlier estimates of 7.2 percent and 7.1 percent, the report showed.
“Continued measures to contain local government debt, contain shadow banking, reduce excess capacity, curb energy demand, and control pollution will reduce investment and manufacturing growth,” the World Bank wrote in the report.