World Bank cuts China’s economic growth forecast

The World Bank has slashed its growth forecast for China’s economy this year to 7.7% from 8.4%, warning of a potential “sharp” slowdown triggered by a fall in investment. The projection is lower than the 7.8% expansion the country recorded in 2012, which was its weakest in 13 years, and comes as a slew of data indicate the economy is struggling to pick up pace. Chinese household debt is around two to 3 times higher than the level before 1997 when the Asian Financial Crisis hit, the report said. The World Bank’s forecast cuts followed a recent lowering by the International Monetary Fund to 7.75% from the previous 8%.

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