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World Bank Cuts China, East Asia Growth Forecasts

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http://uk.reuters.com/article/2013/10/07/uk-worldbank-asia-idUKBRE99601Q20131007

The World Bank lowered its 2013 and 2014 economic growth forecasts for China and most of developing East Asia on Monday, citing slower growth in the world's most populous nation as well as weaker commodity prices that have hurt exports and investments in countries such as Indonesia.

"Developing East Asia is expanding at a slower pace as China shifts from an export-oriented economy and focuses on domestic demand," the World Bank said in its latest East Asia Pacific Economic Update report.

"Growth in larger middle-income countries including Indonesia, Malaysia, and Thailand is also softening in light of lower investment, lower global commodity prices and lower-than-expected growth of exports," it added.

The Washington-based development bank now expects developing East Asia to expand by 7.1 percent this year and by 7.2 percent in 2014, down from its April estimate of 7.8 percent and 7.6 percent, respectively.

CHINA LOCAL GOVERNMENT DEBT A CONCERN

On China, the World Bank said the massive, investment-heavy stimulus program supported by credit expansion had run its course, and policymakers must focus on containing the rapid growth of credit and tighten financial supervision.

It added local government debt was a concern, given the complexity and opacity of municipal finances, and said they should be reformed "with clear rules on borrowing, on allowed sources of borrowing, on debt resolution, and on the disclosure of comprehensive financial accounts by local governments".

"The rapid expansion of shadow banking poses serious challenges, since shadow banking is closely linked to the banking system, is less regulated, and operates with implicit guarantees from banks and local governments," the World Bank said.

Growth softening I thought inflation was kicking off all over East Asia, which as we know thanks to Abe is the driving force of getting consumers to spend?

China is going to be interesting when the inevitable happens and it's banking system implodes or can the central party cover up such a failure and print a healthy balance sheet for it's banks?

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http://uk.reuters.co...E99601Q20131007

Growth softening I thought inflation was kicking off all over East Asia, which as we know thanks to Abe is the driving force of getting consumers to spend?

China is going to be interesting when the inevitable happens and it's banking system implodes or can the central party cover up such a failure and print a healthy balance sheet for it's banks?

No inflation in a debt depression. As the dollar tide recedes so one by the one the wrecks are revealed.

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"Growth in larger middle-income countries including Indonesia, Malaysia, and Thailand is also softening in light of lower investment, lower global commodity prices and lower-than-expected growth of exports," it added.

The elephant = Australia

How long do we give AU/NZ housing bubble? 6 or 12 months before bailout and tax payer debt slavery.

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