China slowdown prompts World Bank to cut East Asia growth forecast

The World Bank has trimmed its economic growth forecast for East Asia and the Pacific to 3.2% from 5% in April due to China’s slowdown. The revised forecast was also down from the previous year’s growth of 7.2%. The weaker forecast was due mainly to a sharp slowdown in China, caused by its strict zero-Covid rules that have disrupted industrial production, domestic sales and exports, the World Bank said. China, which constitutes 86% of the 23-country region’s economic output, was projected to grow 2.8% this year, a significant deceleration from the bank’s April forecast of 5%. For next year, the world’s second-largest economy was seen growing at 4.5%.