World Bank cuts growth outlook for Asia
(10 October 2012 – Asia) In the latest World Bank report, Asia’s growth is shown to be slowing more sharply than expected due to weak global demand.
The bank cut its growth outlook for Asia on Monday to 7.2 percent this year, down from its May forecast of 7.6 percent.
It cut its outlook for China, the region's biggest economy, to 7.7 percent from May's 8.2 percent. The growth forecast for 2013 was cut to 8.1 percent from an earlier 8.6 percent.
The bank said demand in key export markets has been hurt by the lacklustre US recovery and recession in Europe.
'Economic projections for EAP (East Asia and Pacific) are surrounded by considerable uncertainties, and a variety of risks continue to loom over the global and regional economy,' the World Bank said.
The World Bank was bullish about Southeast Asia due to strong domestic demand and noted investment spending in Thailand, Malaysia and Indonesia was booming.
The bank said most developing East Asian economies were well positioned to weather troubles in the global economy as they enjoyed current account surpluses or only modest deficits and held high levels of foreign exchange reserves relative to their international payment obligations.
It cut its outlook for China, the region's biggest economy, to 7.7 percent from May's 8.2 percent. The growth forecast for 2013 was cut to 8.1 percent from an earlier 8.6 percent.
The bank said demand in key export markets has been hurt by the lacklustre US recovery and recession in Europe.
'Economic projections for EAP (East Asia and Pacific) are surrounded by considerable uncertainties, and a variety of risks continue to loom over the global and regional economy,' the World Bank said.
The World Bank was bullish about Southeast Asia due to strong domestic demand and noted investment spending in Thailand, Malaysia and Indonesia was booming.
The bank said most developing East Asian economies were well positioned to weather troubles in the global economy as they enjoyed current account surpluses or only modest deficits and held high levels of foreign exchange reserves relative to their international payment obligations.
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