THE Chinese economy is in the midst of a gradual slowdown, the World Bank said yesterday in its China Quarterly Update.
It has revised its forecast of China's economic growth this year to 8.2 percent from a previous 8.7 percent.
The revision came a day after the Asian Development Bank cut its previous forecast of 9.1 percent to 8.5 percent.
"A weaker global economic environment and tighter domestic policies combined to slow China's GDP growth," the World Bank update said. "Such weakness is expected to dominate the near-term outlook, with growth projected at 8.2 percent in 2012."
Both banks' forecasts are higher than the Chinese government target of 7.5 percent growth this year.
Ardo Hansson, the World Bank's lead economist for China, said: "China's consumption growth slows somewhat, investment growth decelerates more pronouncedly, and external demand remains weak. The risks of overheating are moderating, increasing the prospects to achieve a soft landing."
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