China's economic re-balancing will shave a few percentage points off its neighbors' growth outlook in the coming years, the World Bank announced on Wednesday.
Gross domestic product (GDP) in developing East Asia will ease to 6.3 percent in 2016 and 6.2 percent in 2017-18, versus 6.5 percent in 2015, the Washington-based institution predicted in a new report, adding that the forecasts reflected China's transition to a slower, more sustainable growth model.
"Developing East Asia and Pacific faces elevated risks, including a weaker-than-expected recovery in high-income economies and a faster-than-expected slowdown in China," said Sudhir Shetty, chief economist of the World Bank's East Asia and Pacific region. "At the same time, policy makers have less room to maneuver in setting macroeconomic policy."
Excluding China, the East Asia region's developing countries could see growth hit 4.8 percent in 2016 and 4.9 percent in 2017-18, from 2015's 4.7 percent, thanks to reasonably robust growth in Southeast Asia.