East Asia growth forecast cut by the World Bank

The World Bank has cut its growth forecast for East Asia's developing countries from 7.8% to 7.1%for 2013. The international lender said that a slowdown in China's growth and the prospect of the end of US stimulus measures would affect growth in the region's economies. China's economy is expected to grow by 7.5%, lower than the 8.3% prediction made in April this year. Lower commodity prices have also weakened prospects, the bank said. Last week, the Asian Development Bank (ADB) cut its outlookfor the region, also citing slower growth in China as a reason. Time to prepare The ABD and the World Bank both said the much anticipated future scaling down of the $85bn-a-month stimulus programme in the US was a cause for concern. The World Bank's chief economist for East Asia and the Pacific, Bert Hofman, said: "It will mean an increase of global interest rates for which countries would need to prepare. And they need to prepare for potential financial market volatility in the process."