China growth forecast cut by World Bank

<p>The World Bank has cut its growth forecast for China.</p>

The Chinese economy has taken another hit after the World Bank cut its growth forecast for the country from 8.4 per cent in 2013 to 7.7 per cent.

It was also noted by the body that the global economy will expand by 2.2 per cent this year, rather than the 2.4 per cent it had predicted in an earlier report.

China, which has become the world's second-largest economy in the last few years, behind only the US, has seen its economic growth slowed recently as policymakers look to rebalance its growth model.

"The main risk related to China remains the possibility that high investment rates prove unsustainable, provoking a disorderly unwinding and sharp economic slowdown," the World Bank warned in its new report.

Kaushik Basu, chief economist at the World Bank, noted that despite the fact there are "markers of hope" within the financial industry, many economies around the world are still struggling to recover from the global downturn.

Recent data showed export growth slowed to one per cent in May, which is the lowest rate in nearly a year.

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