Latest News:  


World Bank again cuts forecast for China

By Wang Yanlin (Shanghai Daily)

08:10, June 14, 2013

The World Bank cut its growth forecast for China to 7.7 percent yesterday, down from its previous projection of 8.3 percent in April as Chinese policymakers "rebalance the country's growth model."

It was the second cut since December when the bank expected that China would grow at 8.4 percent in 2013.

"The main risk related to China remains the possibility that high investment rates prove unsustainable, provoking a disorderly unwinding and sharp economic slowdown," the bank said in its Global Economic Prospects.

"Should investments prove unprofitable, the servicing of existing loans could become problematic - potentially sparking a sharp uptick in non-performing loans that could require state intervention," the bank said.

It expected growth in the East Asia and Pacific region to slow to 7.3 percent this year, largely due to weaker performance in China as the country started to reduce its reliance on net exports and investment.

The bank said China should address challenges related to the property sector, the financial system and local government liabilities to avoid a sharp slowdown.

Globally, the bank downgraded its economic projection for this year to 2.2 percent from 2.4 percent, citing subdued growth in high-income countries, especially in Europe, despite improvements in their financial condition.

Last year, China's gross domestic product expanded 7.8 percent from a year earlier, the slowest in eight years. In the first quarter, growth moderated further to 7.7 percent, defying market expectations of a mild recovery.

Also yesterday, Barclays lowered its 2013 growth forecast for China to 7.4 percent from a previous 7.9 percent on the country's smaller growth potential and structural reform.

It said China's economy may expand 7.5 percent in the second quarter of this year and an average of 7.2 percent in the second half.

"While we remain cautious about growth, we are not getting bearish," said Barclays economist Chang Jian. "It should be noted that local governments continue to have strong enthusiasm for growth and development."

Data on China's industrial production, fixed-asset investment and retail sales all indicated growth slowed further in May, while exports and imports crashed.

As growth slowed further with little inflationary pressure, Zhou Hao, an economist at Australia and New Zealand Banking Group Ltd, said China's central bank may change its monetary policy stance to support growth.

"There is an imminent need for the central bank to cut the policy interest rate by 25 basic points," Zhou said earlier in a note.

We Recommend:

Fortune Global Forum's guests visits panda

China calls for dialogue after EU solar panel duties

China-South Asia Expo opens in SW China

Huawei launches flagship smartphone Ascend Mate

3D printing gallery opens in Chongqing, SW China

White collars setting up stalls become popular

B787 Dreamliner misses maiden voyage in China

Computex Taipei 2013 exhibition kicks off

12 Asian business women: Intelligent and beautiful

Email|Print|Comments(Editor:WangXin、Chen Lidan)

Leave your comment0 comments

  1. Name


Selections for you

  1. NBC emergency rescue team

  2. Anti-terror exercise conducted in S. Korea

  3. Afghan child labor works

  4. Percussion shows me the world

  5. No quick way
    to a job

  6. Hard times for air pollution

  7. Nanhaizi Park: An ecological garden

  8. Most beautiful Chinese celebs

  9. Turn white rabbit to 'gold'

  10. China owned MG unveils new car

Most Popular


  1. Equities slump amid slow-growth estimates
  2. World owes Snowden debt of gratitude
  3. Male teachers needed at Chinese kindergartens
  4. Hard times for air pollution
  5. Road ahead for China's food safety
  6. Showdown of China's Big Three cities
  7. Market demand adds new dimension to trade row
  8. Optimism remains over resumption of talks
  9. Space dream crystallized with Shenzhou-10 launch
  10. Enthusiasts dream big after Shenzhou-10 launch

What’s happening in China

Turn white rabbit to 'gold' - A young entrepreneur's goal

  1. Japanese citizens detained for fraud, murder
  2. Investigation launched into food poisoning
  3. Children missing after minibus plunges into river
  4. Calls to close legal loophole used by pedophiles
  5. China conducts soil pollution survey