The Asian Development Bank (ADB) said on Thursday that China's economic growth is expected to ease to 9.5 percent this year, and to slow further to about 8.8 percent in the next year.

The government is targeting a slower growth trajectory for the economy as it focused on social and environmental issues that have emerged as a consequence of rapid economic expansion, the bank said in its annual Asian Development Outlook journal.

Last year's economic growth of 9.9 percent followed consecutive years of double-digit expansion. Booming exports and investment continued to propel demand, and industrial output accelerated, according to the report.

The bank said developing Asian economies would deliver strong growth in 2006 supported by a broadly favorable outlook for the international economy, the trend toward improved economic management, and apparent resilience to high oil prices.

The bank projects the region will achieve an overall economic expansion of 7.2 percent this year and 7 percent in 2007, a marginal slowing from 7.4 percent last year.

Ifzal Ali, chief economist of the Manila-based ADB, said, "the strength of the global economy remains a key determinant of growth in developing Asia.

"Asian economies will take strength from the continuing upswing in the global electronics sector and fast growth is expected in the People's Republic of China and India," he said.

The bank said growth projections for developing Asia were heavily influenced by three key economies: China, India, and the Republic of Korea, which together account for 66 percent of regional income.

The ADB is dedicated to reducing poverty in the Asia-Pacific region through sustainable economic growth, social development and good governance.

Source: Xinhua