World Bank cuts East Asia growth forecast, warns of risks to outlook

PUBLISHED ON APR 13, 2015 10:22 AM

Passengers waiting at a bus terminal in Beijing. China's growth is likely to slow due to policies aimed at putting its economy on a more sustainable footing and tackling financial vulnerabilities, the World Bank said. -- PHOTO: BLOOMBERG 

SINGAPORE (Reuters) - The World Bank cut its 2015 growth forecasts for developing East Asia and China, and warned of "significant" risks from global uncertainties including the potential impact from a strengthening dollar and higher U.S. interest rates.

The Washington-based lender expects the developing East Asia and Pacific (EAP) region, which includes China, to grow 6.7 per cent in each of 2015 and 2016, down from 6.9 per cent growth in 2014.

That's down from its previous forecast in October of 6.9 per cent growth this year and 6.8 per cent in 2016.

China's growth is likely to slow due to policies aimed at putting its economy on a more sustainable footing and tackling financial vulnerabilities, the World Bank said in its latest East Asia and Pacific Economic Update report on Monday.