China's growth forecast cut amid slowdown
The ADB says the mainland and the region will experience slower growth this year and in 2013 even if more stimulus is injected into the system
The Asian Development Bank (ADB) has trimmed its forecast for the mainland's and the region's economic growth for this year and next year as weak European and North America demand is expected to drag down growth even as governments are likely to step up spending and ease credit supply.
Given the Western markets are expected to stay lacklustre in the medium term, the Manila-based multilateral policy bank said Asian nations other than Japan must speed up reforms and diversify sources of growth to dilute their reliance on the West, where purchasing power has been sapped by unsustainably high debt.
In a report on the region's economic outlook released yesterday, the ADB projected the mainland's gross domestic product to grow 7.7 per cent this year, lower than the 8.5 per cent it projected in April.
It also slashed its forecast for next year's growth to 8.1 per cent from 8.7 per cent.
For Asia excluding Japan as a region, growth is predicted to be 6.1 per cent this year, down from 6.6 per cent estimated in July and 6.9 per cent projected in April.
ADB chief economist Changyong Rhee said the mainland has policy room to prevent an economic crash but he urged faster reform.