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Wednesday, May 23, 2012

World Bank warns of China slowdown

NEW YORK (CNNMoney) -- The World Bank said a slowdown in China will drag on growth in the entire East Asia-Pacific region.

The bank, an international organization that helps to fund projects in the developing world, said in a report released Wednesday that growth in the East Asia-Pacific region should slow to 7.6% this year from 8.2% in 2011 and 10% as recently as 2010.

The slowing regional growth is due to China, which has seen its exports fall due to economic weakness across the developed nations that are its primary customers. Chinese growth is projected to fall to 8.2% this year from 9.2% last year, according to the World Bank's forecast.

The bank said China and other developing economies in the region need to do more to break their reliance on exports, such as encouraging domestic purchases. Read More