Growth forecasts for China and much of East Asia have been revised down by the World Bank for this year and next.
The bank says China has made progress in rebalancing the economy, with more consumption, services growth and less investment. But more domestic consumption has meant a drop in imports from Asian neighbours, who are also being hit by a fall in commodity prices. And local government debt and the opacity of China’s financial markets remain risks insists the bank.
Of the region’s big players only the Philippines gets a forecast upgrade, driven by healthy consumption underpinned by remittances from abroad. Tuesday sees the publication of the IMF’s latest view of the world.