WB lowers East Asia forecast
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The World Bank has cut its growth forecast for East Asia's developing countries in 2013. The lowered expectations reflect regional powerhouse China's slowdown, plus the looming end of the United States' cheap-money stimulus policy.
Growth in larger middle income countries including Indonesia, Malaysia, and Thailand is also softening in light of lower investment, lower global commodity prices and lower than expected growth of exports, says the East Asia Pacific Economic Update released today.
According to the report, the growth forecast for developing countries in the region is 7.1 percent for 2013, and 7.2 percent for 2014. While this is a slight downward revision from World Bank projections in April 2013, developing East Asia is leading other regions.
