MUMBAI, India (AP) — The World Bank has cut its growth forecast for East Asia's developing countries in 2013. The lowered expectations reflect regional powerhouse China's slowdown, plus the looming end of the United States' cheap-money stimulus policy.
The international lender said Monday that it expects the region's emerging economies to grow by an average of 6 percent, down from its 6.5 percent April prediction.
China was forecast to expand by 7.5 percent, down from its 8.3 percent April outlook. The World Bank said China's rapid growth is slowing as it shifts to an economy driven by its own consumers instead of mostly exports.
Thailand, Indonesia and other developing Asian economies have been hit by weaker demand, plus worries the U.S. will pull back its monetary policy that has poured money into emerging markets.