WB cuts growth forecasts for developing East Asia

The World Bank has slightly scaled back its 2013 growth forecasts for developing East Asia, warning that possible over-heating in the region's larger economies could stoke inflation and asset bubbles.

In its latest East Asia and Pacific Update, the World Bank described the region as the most dynamic in the world. It raised its GDP growth outlook for Thailand and Malaysia. But it lowered its forecast for Indonesia to 6.2% from 6.3%. The bank also lowered its growth forecast for China to 8.3 percent, a 0.1 percentage point drop, citing China's ongoing efforts to restructure its economy.

Axel Van Trotsenburg, Vice President, World Bank, East Asia and Pacific, said, "It (China) had some softening of growth in 2012. In 2011 they grow 9.3 percent, it weakened to 7.8 percent. Chinese authorities took some additional measures during the second half of 2012 and that had the, will have its effect in 2013. Hence there will be a pick-up of growth to 8.3. These are actually very good data and we see this is also good news for the world economy."