Chinese growth forecast lowered by World Bank

<p>China’s growth forecast has been cut by the World Bank and the global economic downturn bites.</p>

China's growth forecast for 2012 has been slashed by the World Bank on concerns demand is hurting the country's expansion.

In its latest East Asia and Pacific Data Monitor, the institution revised down its prediction for this year to 7.7 per cent, after projecting an 8.2 per cent rate was forecast in May, while 2013's expectations have also been lowered to 8.1 per cent from 8.6 per cent.

Lower demand from the US and eurozone – major trading partners that are struggling with their own growth problems – is the main cause for the World Bank's cuts.

Furthermore, policymakers in Beijing have not succeeded in offsetting weaker overseas shipments by stimulating domestic consumption.

"China's slowdown this year has been significant and some fear it could still accelerate," the Bank stated.

At close of play this morning (October 8th), the Hong Kong Hang Seng was 0.6 per cent lower to an index value of 20871.5 points.

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