World Bank cuts East Asia and Pacific growth forecasts

The World Bank has cut its growth forecast for emerging economies in East Asia and the Pacific The World Bank has cut its growth forecast for the developing East Asia and the Pacific region, citing stagnating China and global demand due to high interest rates and weak trade. The World Bank said in an October report on Asia on Monday that it expects emerging economies in East Asia and the Pacific to grow by 5 percent in 2023, slightly below its April forecast of 5.1 percent. The Washington-based bank now expects growth for the region of 4.5 percent in 2024, down from April’s forecast of 4.8 percent. The World Bank left its 2023 economic growth forecast for China unchanged at 5.1 percent but lowered its 2024 forecast to 4.4 percent from 4.8 percent previously. The agency cited “long-term structural factors,” high debt levels in the world’s second-largest economy and weakness in the real estate sector as reasons for the downgrade. Excluding China, East Asia and the Pacific should grow slightly faster in 2024 as the global economy recovers and external demand for the region's manufactured goods and commodities picks up, the World Bank said.