SINGAPORE (Reuters) - The World Bank lowered its 2014-2016 growth forecasts for developing East Asia and China as China's economy cools and policy makers prepare for tighter global monetary conditions.
The Washington-based lender expects the developing East Asia and Pacific (EAP) region to grow 6.9 per cent in 2014 and 2015, down from the 7.1 per cent rate it had previously forecast for both years. Growth in 2013 had been 7.2 per cent.
The bank also trimmed its 2016 growth forecast for the region to 6.8 per cent from 7.1 per cent.
Developing East Asia and Pacific will still remain the fastest-growing developing region, it added.
"Regional exports and growth will benefit from a gradual recovery in high-income economies," the World Bank said in its latest East Asia Pacific Economic Update report on Monday.
Possible risks to the outlook include a weaker-than-expected recovery in global trade and any abrupt rise in global interest rates, the report said, adding that its baseline scenario was based on an orderly normalisation of monetary policy in the United States.
The World Bank said growth in China was likely to slow to 7.4 per cent in 2014 and 7.2 per cent in 2015, down from 7.7 per cent in 2013. Growth in 2016 was seen at 7.1 per cent.
The World Bank had previously seen China's growth coming in at 7.6 per cent in 2014 and 7.5 per cent in 2015 and 2016.