New York, April 12 (FinanceEnquiry.com) – The World Bank after edging China’s economic growth forecast has signaled warnings that world’s second-largest economy’s growth might suddenly slash down.
In 2011, China’s economic growth declined to a two-and-a-half-year low of 8.9 percent in the three months ending in December. According to analysts, further decline is expected in first quarter of 2012 and the related data is expected to be released on Friday.
The World Bank stated that China requires a new stimulus which has to be carefully lined up considering the longer-term effects and objectives. In 2012, a ‘gradual slowdown’ is clearly expected but China might encounter risks either from the situation when it’s main export clients undergo a extreme downturn or if its real estate market further slashes down. The Bank expects that in 2013, China’s growth should again reach at 8.6 percent.
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