World Bank lowers GDP forecast
SINGAPORE: The World Bank yesterday lowered its 2013 growth forecast for East Asian developing countries to 7.1 per cent and warned that a prolonged United States fiscal crisis could be damaging to the region.
The estimate for this year's gross domestic product (GDP) growth is down from a forecast of 7.8 per cent in April, and lower than the 7.5 per cent growth recorded in 2012 and 8.3 per cent in 2011.
Regional GDP growth in 2014 and 2015 was forecast at 7.2 per cent for both years with middle-income economies like Indonesia, Malaysia and Thailand also softening. Excluding China, the region is expected to grow 5.2 per cent in 2013 and 5.3 per cent in 2014.
Bert Hofman, the World Bank's East Asia and Pacific chief economist, said the bank was expecting a "smooth resolution" of the budgetary impasse that has forced the US government shutdown. AFP