MUMBAI, India -- The World Bank cut its 2013 growth forecast for East Asia's developing countries Monday, reflecting regional powerhouse China's slowdown plus the looming end of the United States' cheap-money stimulus policy.
The international lender said it expects the region's emerging economies to grow by an average of 6 percent this year, down from its April prediction of 6.5 percent.
China was forecast to expand by 7.5 percent, lower than the 8.3 percent April outlook. The world's second-largest economy's rapid acceleration is slowing as it shifts to an economy driven by its own consumers instead of mostly exports, and growth hit a two-decade low in the second quarter.
Other developing Asian economies have been hit by weaker demand, plus worries that the U.S. will pull back its loose monetary policy that has poured funds into emerging markets.
Lower global commodity prices and weaker-than-expected export growth have also slowed growth in larger middle-income countries including Indonesia, Malaysia and Thailand, the World Bank economic update said.
The Philippines, though, was forecast to continue its surge of the past two years with a forecast expansion of 7 percent, nearly double the rate of two years ago.