A fall in demand for exports will half growth in countries such as China and Thailand

Economic growth is East Asia will slow sharply as the downturn drains demand for its exports, the World Bank has warned.

Ten countries, including Thailand and China, will grow by 5.3% - half the growth seen in 2007, the organisation said in a report.

Shipping containers exports
Credit: Photohome_uk

China’s economy is anticipated to expand by 6.5%, compared with 13% in 2007.

But the World Bank said China’s huge stimulus package meant its economy should start to recover by the end of 2009.

It is believed that East Asia will be among the worst hit region by the global financial crisis, as richer nations suffering the effects of the recession slow their demand for goods in the region.

Cambodia is predicted to shrink 1% after growing by more than 10% two years ago. Thailand is expected to contract 2.7% after expanding 4.9% in 2007.