** People rescuing an injured passenger from inside a passenger bus hit by a truck on Dhaka-Mawa Expressway in Shologhar area of Shreenagar upazila in Munshiganj on Thursday. ** Motorcycles allowed on Padma Bridge after 10 months ** Commuters charge extra fare, passengers disappointed ** 78 people killed in Yemen stampede ** Moon sighting committee meets today to ascertain Eid day ** 9 killed in road accidents in 3 districts ** US announces new $325 m military aid package for Ukraine ** Eid-ul-Fitr in Saudi Arabia today ** Eid exodus begins ** LPG price cut illusive ** 15 hurt as bus overturns in capital ** New interbank cheque clearing timings set for Eid holidays ** Four women hit by a train die in Tangail ** 12.28 lakh SIM users left Dhaka on Tuesday ** Sylhet engineer threatened over power outage ** People rush to village homes to spend Eid holidays with their near and dear ones. This photo was taken from Sadarghat Launch Terminal on Tuesday. NN photo ** Surge in cases of dehydration, diarrhoea amid summer heat wave ** Padma Bridge construction cost increases by Tk 2,412cr ** PM gives Tk 90m to Bangabazar fire victims ** Textile workers block highway demanding wage, Eid bonus ** Attack on PM's motorcade Ex-BNP MP, 3 others get life term ** Load-shedding increases for demand of electricity during heat wave ** Motorbikes to be allowed on Padma bridge from Thursday ** 5-day Eid vacation begins from today ** Take Nangalkot train accident as a warning about negligence of govt functionaries **

China’s growth to moderate: WB

07 June 2014

AFP, Beijing :
China's economy will moderate over the next few years as Beijing looks to rebalance it, the World Bank said on Friday, but it warned of risks from local government debt, a cooling real estate sector and an uncertain export recovery.
The bank's Economic Update on China comes amid fears the Asian giant and driver of global growth is slowing too much, as the leadership looks to pivot towards private, domestic demand from a reliance on big-ticket government investment projects.
"China's growth will continue to moderate over the medium term, and the structural shifts will become more evident," it said.
The report pointed out that the world's number two economy had shown signs of picking up in recent months thanks to government support measures, robust consumption and improving foreign demand, adding the recovery is likely to continue into the next two quarters.
The Washington-based lender forecast growth of 7.6 percent this year, unchanged from its April estimate but lower than China's actual growth of 7.7 per cent in 2013. Beijing's own target for this year is 7.5 per cent.
However, it said there were dangers down the road, including from a disorderly deleveraging of local government debt, which could potentially trigger a sharp slowdown in investment - a key driver of the economy.
There were also problems facing the cooling real estate sector and and the export sector, the report added.
It noted that the latest estimate by the National Audit Office of local government debt and contingent liabilities in mid-2013 was 17.9 trillion yuan ($2.9 trillion).
That is 31.3 per cent of the overall economy last year and compares with 10.7 trillion yuan at the end of 2010, the report said.
"While the debt stock is manageable, the growth of local government debt at a yearly rate of around 20 percent in 2010-13 is a major concern, and some subnational governments may be overdebted," the Bank said.
Regarding the property market the Bank said: "In some municipalities, a decline in real estate activity has started to put pressure on land-lease revenues, which still average more than half of local government revenues.

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