West’s recession will drag down China’s growth to 7.7%: World Bank
9 Oct 2012 12:38 AM GMT
China's economic growth is set to decline to 7.7 per cent this year, as against 9.3 per cent last year, due to global slowdown, the World Bank said on Monday.
Weak exports and lower investment growth will cut down China's GDP growth, it said. Besides, economic growth in the East Asia and Pacific region may slow down from 8.2 per cent in 2011 to 7 per cent this year, before recovering to 7.6 per cent in 2013, it said in the East Asia and Pacific Economic Data Monitor.
Growth in developed countries will remain modest, with recovery in the region to be driven mainly by strong domestic demand in developing countries, a press release outlining the Bank's assessment report said.
On China, it said that the growth is expected to rebound to 8.1 per cent as the impact of stimulus measures kicks in, supported further by an up tick in global trade.
The country's growth in the first half of this year cooled to 7.6 per cent, its lowest in more than three years.
In August, the manufacturing purchasing managers' index dipped below 50 points for the first time in nine months, indicating contraction. Exports remained weak, growing only 2.7 per cent in August from a year earlier.
China has announced about USD 157 billion worth of stimulus package mainly in the infrastructure to spur growth. The Bank said investment growth in China has slowed in particular, driven by last year's measures to rein in investments in real estate.
However, relaxation in monetary policy earlier this year and local and central government stimulus measures could again reverse this trend in months to come, it said. PTI
CASH CRUNCH
Weak exports and lower investment growth will cut down China's GDP growth, it said. Besides, economic growth in the East Asia and Pacific region may slow down from 8.2 per cent in 2011 to 7 per cent this year, before recovering to 7.6 per cent in 2013, it said in the East Asia and Pacific Economic Data Monitor.
Growth in developed countries will remain modest, with recovery in the region to be driven mainly by strong domestic demand in developing countries, a press release outlining the Bank's assessment report said.
On China, it said that the growth is expected to rebound to 8.1 per cent as the impact of stimulus measures kicks in, supported further by an up tick in global trade.
The country's growth in the first half of this year cooled to 7.6 per cent, its lowest in more than three years.
In August, the manufacturing purchasing managers' index dipped below 50 points for the first time in nine months, indicating contraction. Exports remained weak, growing only 2.7 per cent in August from a year earlier.
China has announced about USD 157 billion worth of stimulus package mainly in the infrastructure to spur growth. The Bank said investment growth in China has slowed in particular, driven by last year's measures to rein in investments in real estate.
However, relaxation in monetary policy earlier this year and local and central government stimulus measures could again reverse this trend in months to come, it said. PTI
CASH CRUNCH
- The country’s growth in the first half of this year cooled to 7.6 per cent, its lowest in more than three years
- China has announced about USD 157 billion worth of stimulus package mainly in the infrastructure to spur growth
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