Chinese growth to slow, says World Bank

The World Bank released its China Quarterly Update today, projecting gross domestic product (GDP) growth of 6.5% in the country in 2009.

The main risk to the economy remains the weakness of global demand, which has had a severe impact on output and trade. These were previously core drivers of GDP growth and their decline has caused a sharp deceleration.

Despite this, the World Bank says domestic demand has remained resilient in contrast with developed economies, while government investment in infrastructure projects is starting to have an effect.

The update concludes that while pressure on the economy is stil evident, China should continue to grow rapidly because of supportive government policy. An expected pick-up in the global economy is likely to add impetus to this growth, whether it arrives at the end of this year or in 2010.

Growth was 13% in 2007 but slowed to 9% last year, according to preliminary figures.

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