The World Bank has reduced its growth forecast for developing East Asia and Pacific countries
The primary reasons for this adjustment are a slowing Chinese economy and reduced global demand
The revised projection for East Asia and the Pacific in 2023 is 5%, slightly lower than the previous estimate of 5.1%
Growth expectations for 2024 have also been lowered from 4.8% to 4.5% for the region
China's growth forecast for 2023 remains at 5.1%, but it's lowered to 4.4% for 2024 due to various factors
The World Bank attributes China's downgrade to "longer-term structural factors" and concerns over high debt levels
While China's growth is influenced by domestic factors, external factors will impact the rest of the region more significantly
Despite recovering from shocks, the pace of economic growth in East Asian economies is expected to slow down
The World Bank highlights the rise in government and corporate debt, particularly in China, Thailand, and Vietnam
High debt levels could limit both public and private investment and have adverse effects on consumption in the region