World Bank nudges China 2017 GDP growth forecast a tad higher

The World Bank expects the Chinese economy to cool further over the short-term but said the Asian giant was making progress on re-balancing.

In its latest quarterly update, the multilateral lender projected that the rate of growth in China's gross domestic product would slow from a 6.8% pace in 2017 to 6.4% in 2018 and 6.3% for 2019.

However, progress was being made in 're-balancing' the underlying pattern of growth away from investment and towards consumption.

Furthermore, the World Bank's forecast for GDP growth in 2017 was revised higher by a tenth of a percentage point.

"Prudent monetary policy, stricter financial sector regulation, and the government's continuing efforts to restructure the economy and to rein in the pace of leveraging are expected to contribute to the growth moderation," the Washington-based institution said.

"Favorable economic conditions make this a particularly opportune time to further reduce macroeconomic vulnerabilities."