16 July 2013 09:49 [Source: ICIS news]
SINGAPORE (ICIS)--China’s economy is likely to expand by 7.7% this year, slightly slower than the 7.8% clip in 2012 amid slowing trade, the Asian Development Bank said on Tuesday.
Its export and import activities have slowed down because of weak external demand, but the ADB noted in its latest Asian Development Outlook Supplement that consumer confidence in the country continues to be robust.
In 2014, ADB is projecting the Chinese economy to grow at a slower rate of 7.5%.
China’s second-quarter economic expansion was 7.5% year on year - the lowest in four years – and represents a deceleration from the 7.7% growth recorded in the first quarter.
“Slower growth in the PRC [People’s Republic of China] has subdued the outlook for the entire east Asia region, as well as, to a lesser extent, for southeast Asia, where the Philippines and other large ASEAN [Association of Southeast Asian Nations] countries are otherwise seeing solid growth,” the ADB said.
For Asia as a whole, the multilateral institution has trimmed its 2013 growth forecast to 6.3% and cut its 2014 prediction to 6.4% from its previous forecasts of a 6.6% and a 6.7% rate of expansion, respectively.
“The drop in trade and scaling back of investment are part of a more balanced growth path for PRC, and the knock-on effect of its slower pace is definitely a concern for the region,” said ADB chief economist Changyong Rhee.
“But we are also seeing more subdued activity across much of developing Asia,” Rhee said.
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