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World Bank Says No Reason For Fiji To Be Concerned Over China’s Growth Slowdown

  Fiji should not be concerned about slowdown forecast of the Chinese economy says World Bank Chief Economist, Sudhir Shetty. China’s growth forecast is expected to drop to 6.3 per
06 Oct 2016 14:27
World Bank Says No Reason For Fiji To Be Concerned Over China’s Growth Slowdown
World Bank Chief Economist, Sudhir Shetty.

 

Fiji should not be concerned about slowdown forecast of the Chinese economy says World Bank Chief Economist, Sudhir Shetty.

China’s growth forecast is expected to drop to 6.3 per cent by 2018 against a 7.8 per cent growth recorded in 2013.

Mr Shetty said China was a big investor across the region and one question would be if China’s sharp slowdown would affect its investments overseas.

“Firstly, the likely sharp slowdown in China is relatively small in which growth slows in China but slows moderately to about 6.3 per cent by 2018,” Mr Shetty said.

“And in that event, it’s unlikely that there will be much of an impact on investments abroad.

“This is because as China slows, what you will also see is China rebalancing, China moving out of investments, moving capital out to the parts of the world and Fiji obviously gets part of that.”

He focused that Fiji in particular, where China has invested a lot of money, should not be concerned.

“Fiji in particular should not be concerned about as the sharp slowdown in China is not a significant change at this juncture,” he said.

Mr Shetty’s comments and figures were based on the latest report by the World Bank, East Asia Pacific Economic Update October 2016: Reducing Vulnerabilities.

 

Fijian outlook

Meanwhile for Fiji, the World Bank predicts growth momentum remains strong despite the downward revision in growth forecasts following Tropical Cyclone Winston.

It is expected to be boosted by strong visitor arrivals, inward remittances and credit growth.

“Poverty has declined faster in rural areas than in urban centers, although the picture may have been partially reversed by the recent cyclone which disproportionately affected rural areas,” the report said.

“The outlook is broadly favorable but with downside risks from external developments and the quality of domestic policy adjustments.

“Restoring fiscal sustainability remains a priority for maintaining strong and inclusive growth.”

edited by: RACHNA LAL

Feedback:  kathrin.krishna@fijisun.com.fj

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