China may not face major slowdown: WB

The lender also slashed growth forecasts for developing Asia,excluding China,due to weak export demand from developed countries and as widespread flooding has hit Thailands manufacturing base.

On balance,we believe that while there are issues in China,they are being managed and the magnitude of those issues does not add up to something that would lead necessarily to a major slowdown as some have talked about, Bert Hofman,World Bank chief economist for East Asia and the Pacific,said.

China will grow 9.1 per cent this year,the World Bank said,slightly higher than the banks previous forecast of 9.0 per cent growth issued in March. In 2012,growth will slow to 8.4 per cent,it said.

China can continue growing at a 9 to 10 per cent per annum pace for the foreseeable future,based on the experience of other countries with a per capita gross domestic product of around 5,000,Hofman said,which is slightly more than Chinas per capita GDP.

Chinas growth this year is below last years level as weakening external demand has hurt investment and exports,the bank said.