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World Bank sees China slowing over next 2 years

The World Bank expects China's economy to grow 7.0% this year and gradually slow over the next two years, according to a report released Monday.

"China has sufficient policy buffers and tools to address the risk of a more pronounced slowdown, including relatively low public debt levels, regulations restricting savings outside the banking system and the state's dominant role in the financial system," the World Bank said in its East Asia and Pacific Economic Update.

Sustained reforms in China will support a rebalancing of local demand from investment to consumption, it said. The World Bank expects China to grow 6.7% in 2016.

The East Asia region is expected to grow 6.5% in 2015, moderating from 6.8% last year, it said. The slower growth is primarily due to the continuing gradual slowdown in China and a few other nations such as Malaysia and Indonesia.

East Asia remains one of the main growth drivers of the world economy, accounting for nearly 40% of global economic growth, the report said.

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