The World Bank has had its credibility dented by this from last week:
- World Bank leaders, including then-Chief Executive Kristalina Georgieva, applied “undue pressure” on staff to boost China’s ranking in the bank’s “Doing Business 2018” report
Link here more on that ….
Moving along though, the World Bank’s East Asia and Pacific Fall 2021 Economic Update
- China’s economy is projected to expand by 8.5%
- the rest of the region is forecast to grow at 2.5% (nearly 2 percentage points less than forecast in April 2021)
- “The economic recovery of developing East Asia and Pacific faces a reversal of fortune”
- “Whereas in 2020 the region contained COVID-19 while other regions of the world struggled, the rise in COVID-19 cases in 2021 has decreased growth prospects for 2021.”
I think developments in China have worsened since the bank researched for this piece:
Evergrande, power shortages, factory layoffs ….
- Chinese media says to expect a crackdown on high coal prices – citing power shortages, cuts to factory output
- Goldman Sachs has cut its China 2021 GDP forecast to 7.8% (from 8.2% previously)