World Bank lowers China's growth forecast in 2008

The World Bank forecast mainland China's economic growth will moderate to 9.4% this year, ending the double-digit growth for five consecutive years, it said in its half-yearly update on East Asia and Pacific region economies.

The Washington-based institution estimated the growth rate of China's gross domestic product would expand by 10.8% in 2008 in accordance with its prior estimate.

"While the uncertain global outlook may slow China's exports, the country's growth is expected to remain robust, and the authorities are well positioned to stimulate demand if needed," the institution said.

Analysts pointed out that the slower growth estimate would be compatible with the Chinese government's use of macro-economic policies to rein in inflation. Still, China faces mounting pressure on increasing food and fuel prices.