China’s economic growth will slow to 7.5 percent this year and 7.4 percent next year, weighing on overall growth in Asia’s developing countries, the Wall Street Journal reported Tuesday, citing the Asian Development Bank. In its Asian Development Outlook 2014, the bank said developing countries in Asia will show stronger growth over the next two years but this will be dependent on China’s ability to smoothly contain internal credit growth as well as the expected continued recovery of major industrialized countries. If China’s efforts to curb credit expansion are too abrupt, leading to even slower growth in the world’s No. 2 economy, this could drag down prospects for the nation’s trade partners in the region, the report said. China’s economic growth slowed to 7.7 percent last year compared with the double-digit levels of recent years. ADB attributed this to a combination of tighter credit growth, industrial overcapacity, deepening local government debt, rising wages, currency appreciation and a continuing shift in development priorities as the government rebalances the economy, the report said.
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