The World Bank on Tuesday cut its 2009 forecast for China's economic growth to 7.5 percent, from 9.2 percent previously, in a report released in Beijing.
With the financial crisis spreading globally, the impact on China is expected to intensify amid a global fund squeeze and a slowdown in export growth in 2009, the World Bank said in its China Quarterly Update.
"The global economy is facing great difficulties. The slowdown in the United States, Europe and Japan should affect developing economies including China," said David Dollar, the World Bank's Country Director for China.
The report said world growth prospects were distinctly unfavorable and a synchronized global slowdown appeared to be in sight.
The World Bank expects global economic growth to ease from 4.1 percent in 2007 to 3 percent in 2008 and further slow to about 1 percent in 2009.
In China, growth slowed to 9.9 percent in the first three quarters of 2008 after five years (2003-2007) of double-digit increases.
Exports, a bedrock of China's expansion, are feeling the pinch of slackening external demand. Export growth in October weakened to 19.2 percent from 21.5 percent in September.
The report said China's 4 trillion yuan (585.7 billion U.S. dollars) stimulus package would have a measurable economic impact in the short term, contributing to half of the 7.5 percent growth next year.
The stimulus package, containing many steps that support long-term development and raise living standards, provides China with a good opportunity to rally its economy, according to the World Bank.
The bank also suggested the government do more to promote development in fields such as energy and resource pricing, health, education, the social safety network, financial reform and institutional reform.
Source:Xinhua
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