World Bank cuts China growth forecast

The World Bank cut its growth forecasts for China in 2013 and 2014 on Monday, Reuters reported. The Washington-based bank’s previous prediction for China’s growth in 2013 was 8.3% but has been cut to 7.5%, and next year’s growth has been revised to 7.7% from 8% previously. It said that policymakers should quell the rapid growth of credit and tighten financial supervision. Local government debt is also a concern and should be reformed. Most other East Asian countries also had their GDP forecasts cut on slower growth in China and as well as weaker commodity prices that have hurt exports and investments.