World Bank expects China's economic growth to bounce back to 8.4 pct in 2013 (3)

BRIGHT SPOT IN GLOBAL ECONOMY

Developing East Asia excluding China is projected to grow by 5. 6 percent this year, up from 4.4 percent in 2011. The continuing strong performances by Indonesia, Malaysia and the Philippines will boost the growth of the region to 5.7 percent in 2013 and 5.8 percent in 2014, respectively.

The Myanmar economy is also a bright spot in the region as authorities moved ahead with reforms.

The East Asia and Pacific region as a whole is projected to grow by 7.5 percent in 2012 and 7.9 percent in 2013, respectively. Keiko Kubota, World Bank senior economist, said authorities in most countries in the region have room to ease their fiscal policies when necessary.

"The East Asia and Pacific region is becoming increasingly important for the world economy, and is expected to contribute almost 40 percent of global growth in 2012," said Bert Hofman, chief economist of World Bank for East Asia and Pacific.

The share of people living under 2 U.S. dollars a day in the region is forecast to fall to 23.3 percent by the end of 2014 from 28.8 percent in 2010.

The downside risks include possible delays of the much-needed reforms in the Eurozone, the risks from a "fiscal cliff" in the United States and a possible sharp decline in the growth of investments in China.