HONG KONG – The World Bank is trimming its economic growth forecasts for East Asia, reflecting risks from China's gradual slowdown and a looming U.S. interest rate hike.
The bank said in a report Monday that it expects the developing countries of the East Asia and Pacific region to grow 6.5 percent in 2015, 6.4 percent in 2016 and 6.3 percent in 2017.
The latest estimates are 0.2-0.3 percentage points lower than previously forecast. The 14-country region expanded 6.8 percent last year.
The World Bank said that since those earlier estimates were released in April, "greater uncertainty about the global economy has weighed on the performance and prospects of developing East Asia and Pacific."
The report said spillover effects from China's slowdown and financial market volatility from a U.S. rate hike pose risks.