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World Bank Says Asia Faces Worst Outlook in 50 Years – FT

China has been hit by retail sales slumping below pre-pandemic levels, stagnant house prices, greater household debt and lagging private sector investment, the World Bank says

The World Bank has cut its forecast for China’s growth next year and warned that east Asia’s developing economies are set to expand at one of the lowest rates in five decades.
Economists expected China’s rebound from strict Covid controls would be “more sustained and more significant than it turned out to be”, World Bank chief economist for east Asia and the Pacific Aaditya Mattoo said. (Reuters file photo).


The World Bank has warned that developing economies in east Asia will grow at some of the lowest rates in half a century next year because of US protectionism and the impact of rising levels of debt, a report by the FT said on Monday, adding that a string of weak indicators caused it to downgrade its forecast for China’s 2024 growth to 4.4% from its prediction in April of 4.8% growth.

The bank also cut its 2024 forecast for GDP growth for developing economies in east Asia and the Pacific (which includes China) to 4.5%, down from the 5% rate expected this year, it said, adding that this region is one of the world’s main growth engines but “is set for its slowest pace of growth since the late 1960s” excluding extraordinary events such as the Covid-19 pandemic, the Asian financial crisis in the late 1990s and the global oil shock in the 1970s.

Read the full report: The FT.




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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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