China to grow 8.4% in 2012: World Bank
The World Bank on Tuesday projected a growth of 9.1% for China in 2011, followed by a slower growth of 8.4% in 2012.business Updated: Nov 22, 2011 21:40 IST
The World Bank on Tuesday projected a growth of 9.1% for China in 2011, followed by a slower growth of 8.4% in 2012.
The developing East Asia as a whole is expected to grow by 7.8% in 2012, down from 8.2% this year as the growth continues to moderate on weakening external demand, the bank said in its latest East Asia and Pacific Economic Update, reported by Xinhua.Bert Hofman, the bank's chief economist for East Asia and Pacific, said the leading indicators projected further softening for China in the coming six to 12 months but "do not signal an immediate hard landing."
Nevertheless, the growth is expected to slow as external demand weakens and China pushes forward its own structural adjustment towards economic growth driven more by domestic demand.
"While the central projection is for a gradual deceleration of growth, the risks are tilted to the downside," the report said. "The global outlook has become increasingly precarious as advanced economies growth turned more sluggish than previously anticipated and uncertainties continued to loom over the euro area sovereign debt."
The bank's forecast of 9.1% was higher than its previous forecast of 9% for this year.
Hofman said he saw the risks in China in the banking system and the property market, but nevertheless the Chinese authorities were aware of the risks and that they were under control.