World Bank raises E. Asia outlook, sees China growing 8.4% in 2013

 
A man rides an electric bike along a street in the central business district in Beijing on Nov  30, 2012. -- PHOTO: AFP

(REUTERS) - The World Bank raised its 2013 economic growth forecasts for China and developing East Asia on
Wednesday, and said the region remained resilient despite the lacklustre performance of the global economy.

“For 2013, we expect the region to benefit from continued strong domestic demand and a mild global recovery that would nudge the contribution of net exports to growth back into positive territory, a trend projected to  continue into 2014,” the World Bank said in its latest East Asia and Pacific Economic Update.

“Most countries in the region have retained their strong macroeconomic fundamentals and should be able to withstand external shocks,” it added, although it warned of risks such as a sharp drop in investment growth in China that could shake global confidence and a US failure to reach an agreement on tax increases and spending cuts before the end of the year.

The World Bank said China was expected to expand by 8.4 per cent next year, fuelled by fiscal stimulus and the faster implementation of large investment projects. The latest forecast is higher than the 8.1 per cent figure cited in an October report.

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