By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The World Bank has predicted a lower 2014 growth for China and East Asia but said the region will see stable economic growth this year, bolstered by a recovery in high-income economies and the market’s modest response so far to the Federal Reserve’s tapering of its quantitative easing.

The World Bank expects that developing East Asia and Pacific will grow by 7.1 percent in 2014 and 2015, down from 7.2 percent earlier projected for both years, according to it’s latest East Asia and Pacific Economic Update report released on Monday.

‘’The region also remained the largest regional contributor to global growth and trade. Growth is expected to remain at 7.1 percent in 2014 as well as in 2015 and 2016. The tailwinds from improving global trade will offset the headwinds from the tightening of global financial markets,’’ the report said.

As a result, East Asia remains the fastest growing region in the world, despite a slowdown from the average growth rate of 8.0 percent from 2009 to 2013.

“East Asia Pacific has served as the world’s main growth engine since the global financial crisis,” said Axel van Trotsenburg, World Bank East Asia and Pacific Regional Vice President. “Stronger global growth this year will help the region expand at a relatively steady pace while adjusting to tighter global financial conditions.”

China Growth

The World Bank has predicted China’s growth will ease slightly, to 7.6 percent this year from 7.7 percent in 2013.

The report affirmed that excluding China, the developing countries in the region will grow by 5.0 percent, slightly down from 5.2 percent recorded in 2013.

It further affirmed that larger Southeast Asian economies, such as Indonesia and Thailand, will face tougher global financial conditions and higher levels of household debt.

‘’Malaysia’s growth will accelerate modestly, to 4.9 percent in 2014. Its exports will increase, but higher debt servicing costs and ongoing fiscal consolidation will weigh on domestic demand. In the Philippines, growth could slow to 6.6 percent, but accelerating reconstruction spending would offset the drag on consumption from the effects of natural disasters in 2013,’’ the World Bank report said.