World Bank cuts 2009 China growth forecast to 7.5 pct vs. 9.2
25/11/2008 16:45
The World Bank today cut its 2009 forecast for China's economic growth to
7.5 percent, from 9.2 percent previously, in a report released in
Beijing.
With the financial crisis spreading globally, the impact on China is
expected to intensify amid a global fund squeeze and a slowdown in export growth
in 2009, the World Bank said in its China Quarterly Update.
"The global
economy is facing great difficulties. The slowdown in the United States, Europe
and Japan should affect developing economies including China," said David
Dollar, the World Bank's Country Director for China.
The report said world
growth prospects were distinctly unfavorable and a synchronized global slowdown
appeared to be in sight.
The World Bank expects global economic growth to
ease from 4.1 percent in 2007 to 3 percent in 2008 and further slow to about 1
percent in 2009.
In China, growth slowed to 9.9 percent in the first three
quarters of 2008 after five years (2003-2007) of double-digit
increases.
Exports, a bedrock of China's expansion, are feeling the pinch of
slackening external demand. Export growth in October weakened to 19.2 percent
from 21.5 percent in September.
The report said China's 4 trillion yuan
(US$585.7 billion) stimulus package would have a measurable economic impact in
the short term, contributing to half of the 7.5 percent growth next year.
The
stimulus package, containing many steps that support long-term development and
raise living standards, provides China with a good opportunity to rally its
economy, according to the World Bank.
The bank also suggested the government
do more to promote development in fields such as energy and resource pricing,
health, education, the social safety network, financial reform and institutional
reform.
Xinhua
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