China's growth to slow to 8.2% in 2012: World Bank

China's economic growth will fall to 8.2 percent this year due to slowing domestic consumption and weak external demand, before rebounding in 2013, the World Bank forecast on Thursday.

The figure represents a cut in the bank's growth forecast for China after it predicted in January that gross domestic product in the world's second biggest economy would expand 8.4 percent this year.

"The policy challenge for the near term is to sustain growth through soft landing," the bank said in its China Quarterly Update, which forecast growth of 8.6 percent next year.

"While the prospects for a soft landing remain high, there are concerns that growth slows too quickly."

China's growth slowed to 9.2 percent last year from 10.4 percent in 2010, dragged down by the global slowdown and domestic tightening aimed at controlling inflation.

Beijing has since pledged to "fine-tune" policy to prevent a hard landing for the economy, which could trigger widespread job losses and spark social unrest.

"China's gradual slowdown is expected to continue into 2012, as consumption growth slows somewhat, investment growth decelerates more pronouncedly and external demand remains weak," said Ardo Hansson, the World Bank's lead economist for China.

"The risks of overheating are moderating, increasing the prospects to achieve a soft landing."

The World Bank report forecast inflation would fall to 3.2 percent in 2012, below the government's target of around four percent.

It said reserve requirements could be tweaked further to ease the availability of credit, but "policy rate action should be reserved for potential downside scenarios."

China's central bank in February cut the amount of cash banks must hold in reserve for the second time in three months as policymakers moved to increase lending and boost domestic consumption.

The World Bank report came a day before the government is due to release key economic indicators for the first quarter of 2012 expected to show growth slowed slightly from the same period in 2011.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Lenten procession more than just a spectacle VERA Files - The Inbox

    Text and photos by Kiersnerr Gerwin Tacadena, VERA Files Baliuag, Bulacan--This town is hosting what could be the country’s biggest Lenten procession consisting of more than 100 religious statues riding on carriages or carrozas. But concerns are being raised that … Continue reading → …

  • Holy Week in Mt Banahaw: Mysticism meets Catholicism VERA Files - The Inbox

    Text and photos by Patricia Isabel Gloria, VERA Files Dolores, Quezon—Around this time each year, hundreds of devotees flock to Barangay Sta. Lucia in Dolores, Quezon on the slopes of Mount Banahaw to celebrate Holy Week. Here, mysticism meets Catholicism, … Continue reading → …

  • Simbang lakad for Lolo Uweng VERA Files - The Inbox
    Simbang lakad for Lolo Uweng

    By April Anne Benjamin, VERA Files San Pedro, Laguna--For 14 Maundy Thursdays now, Inding Amoranto has prayed the rosary while walking the eight-kilometer distance from her house to the Shrine of Jesus in the Holy Sepulcher in the village of … Continue reading → …

POLL
Loading...
Poll Choice Options