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Solid growth seen in Asia

Solid growth seen in Asia
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The World Bank has upped its forecasts for next year for China and the developing countries of East Asia – Thailand, the Philippines, Indonesia and Burma.

The Bank’s experts now expect China’s economy to grow by 8.4 percent, up from an earlier projection of 8.1 percent.

They also said the region remains resilient despite the weak performance of the world economy, but they warned of risks such as a sharp fall in investment growth in China which could shake global confidence.

A slowdown in China’s growth in recent months has prompted policymakers to announce various stimulus measures.

These include two interest rate cuts since June, and the approval of infrastructure projects worth more than 113 billion euros.

China’s central bank, the People’s Bank of China, has also lowered the amount of money that banks need to keep in reserve three times in the past few months in an attempt to boost lending.

“The impact of easing credit conditions and public investment in infrastructure is beginning to show,” the bank said in its report.

“The impact is expected to continue to be felt into 2013, as the authorities have accelerated the approval of large projects.”

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