World Bank: Developing East Asia Slows

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Oct. 7 (Bloomberg) –- Bloomberg’s Mia Saini reports on the just released World Bank report on East Asia, cutting their outlook on growth. She speaks with Susan Li on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)

They are cutting their outlook on asia-pacific growth this year.

Developing east asia will be 7.1%. next your, growth coming in at 7.2%. other highlights include that the east asia-pacific continues to be the engine for the global economy, contribute in 40% of the world's gdp growth.

That is more than any other region.

A going to say that, with global growth accelerating, now is the time for developing economies to make structural and policy reforms to sustain growth.

They also spent some time talking about china.

They agree with almost everyone the growth for china will come in at 7.5% for the year.

Excluding china, the east asia growth comes in at 5.2% this year and 5.2% next year.

They also say that developing countries should take more risk.

They should have a higher appetite for risk assets because come only by taking risks can use per growth.

They also lay out specific strategies to manage the trade- off between taking on more risk and avoiding the costly shocks and under which to pursue these opportunities.

The report also says that the bank member nations need to move from being a "crisis fighter was put to a more risk manager.

-- "crisis fighter" to a more risk manager.

But some say why did it take them so long to cut chinese growth.

They also say that there's a lot going on in china, specifically, an improvement to the industrial production.

But for the strengthening is not at the point of complete stabilization.

That could be some reason why it took a lot longer.

But a greater than expected slowdown in investment in china could have an adverse effect on the region, especially on suppliers.

Just to reiterate, they are looking for the 2014 growth forecast.

It is similar to what we are seeing this year, right?

Absolutely.

It is pretty much in line.

7.2% the next year.

One asset that i thought was interesting in the report is that they say the government should follow singapore's example in setting up a national board that develops how risks should be managed.

Singapore should be the benchmark for how emerging nations in asia are judicial and taking on more risks.

Only with more risk can you get

This text has been automatically generated. It may not be 100% accurate.

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