China’s economic growth rate will likely slow to 8.4 percent this year amid persistent global economic uncertainty, a Washington-based lender said Thursday.
The World Bank forecast the world’s No. 2 economy would post a still robust 8.4 percent growth in 2012, but that growth projection is lower than last year’s 9.2 percent gain.
“In China, the lagging effects of monetary policy tightening, both in terms of interest rates and regulatory adjustment, are expected to combine with weak external demand to slow gross domestic product (GDP) growth,” the bank said in its twice-yearly Global Economic Prospects report.
“The bulk of activity is expected to come from domestic demand with private consumption and fixed investment each contributing 3 and 4 percentage points to GDP in 2012, while net exports afford only a modest 0.2 point addition to growth,” it said.
The global lender estimated China’s economic growth would further ease to 8.3 percent in 2013.
In 2010, China’s economy expanded 10.3 percent, up from a 9.2 percent gain the previous year.
China’s economic growth slowed in 2011 with GDP growing 8.9 percent on-year in the October-December period. The economy grew 9.1 percent on-year in the third quarter and 9.5 percent in the second quarter.