World Bank cuts Asia growth forecast

In its updated outlook for the region, the bank said China's GDP is expected to grow by 6.9 per cent this year.

Singapore: The World Bank on Monday cut its growth forecasts for developing economies in East Asia and the Pacific but allayed fears of a hard landing for China's slowing economy.
The bank also said it expects any increase in US interest rates to have an orderly impact but warned of a risk that markets could react sharply, causing regional currencies to fall further.
In a report on 14 economies led by China, the bank called on them to mitigate the impact of the slowing Chinese economy and any increase in US rates by adopting "prudent macro-economic management" and deeper structural reforms.
"The baseline growth projections for China assume a further gradual slowdown in 2016-'17," the bank said.
"China has sufficient policy buffers to address these risks and prevent a sharp slowdown," it said.
In its updated outlook for the region, the bank said China's gross domestic product (GDP) is expected to grow by 6.9 per cent this year, moderating to 6.7 per cent next year and 6.5 per cent in 2017. GDP rose 7.3 per cent in 2014.
For developing economies in the East Asia-Pacific region, average growth is forecast at 6.5 per cent this year, 6.4 per cent next year and 6.3 per cent in 2017. This is down from 6.8 per cent growth in 2014.
The 14-country forecast also includes Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Cambodia, Laos, Myanmar, Mongolia, Fiji, Papua New Guinea, the Solomon Islands and East Timor.
Among the bigger Southeast Asian countries, the Philippines and Vietnam are expected to be the stronger performers as weak commodity prices hobble growth in oil exporters Indonesia and Malaysia.
The Philippine economy is forecast to grow by 5.8 per cent this year, 6.4 per cent next year and 6.2 per cent in 2017, compared with 6.1 per cent in 2014.
Vietnam's GDP is forecast to rise from six per cent in 2014 to 6.2 per cent this year and 6.3 per cent each over the next two years.
For Malaysia, growth is expected at 4.7 per cent this year and in 2016 and five per cent in 2017, down sharply from six per cent in 2014. Indonesian growth should come in at 4.7 per cent this year, 5.3 per cent next year and 5.5 per cent in 2017, compared to five per cent in 2014.