China’s growth forecast reduced to 9.4%

by Richard Kilner

Story link: China’s growth forecast reduced to 9.4%

The World Bank’s economic growth forecast for China in 2008 has been reduced from 9.6% to 9.4%.

The reasoning behind the revision was entirely due to financial factors external to China itself, according to Louis Kuijs, senior economist of the World Bank’s Beijing office.

As the world’s economy has slowed during the last two months it has had an effect on China’s growth rate, and this is expected to continue over the course of 2008.

However, China’s domestic consumption is still predicted to expand rapidly, and strong investment is forecast.

Last year saw China record five consecutive years of economic growth in double digits, hitting 11.4%.