World Bank cuts East Asia growth forecast from 5% to 4.5%

The news: The World Bank has tempered its growth forecasts for developing countries in East Asia and the Pacific amid tightening credit, challenging global conditions and lumbering growth in China.

The numbers: The World Bank lowered its 2023 GDP growth forecast for the EAP region from 5% to 4.5%. China accounted for a proportion of the reduced figures, the report linking a 1% growth reduction in the world's second-largest economy with a 0.3% contraction in the broader region's GDP. China's economy is expected to grow by 4.4% next year, down from the 4.8% previously forecast.

The context: The new estimates were still stronger than in other emerging markets, the report said. Excluding China, EAP growth should improve in 2024 as the global economy recovers and revitalises demand for the regions manufactured goods and commodities.