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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