World Bank trims China's growth outlook

BEIJING, April 12, 2012

http://www.thehindu.com/news/international/article3306142.ece

The World Bank has cut its growth forecast for China, adding to warnings the world’s second-largest economy might be slowing too abruptly.

The bank said Thursday that Beijing should be ready to launch a new stimulus if needed.

The bank said it expects a “soft landing” but reduced its growth outlook for this year to 8.2 percent from 8.4 percent. It cited U.S. and European economic woes and Chinese lending and investment curbs imposed to cool an overheated economy.

Beijing is trying to steer growth that spiked to 10.4 percent in 2010 to a sustainable level without causing the economy to stall. Some analysts say the controls might cause growth to nosedive, raising the risk of job losses and unrest.