(Yicai Global) Oct. 5 -- The World Bank has revised its China gross domestic product (GDP) growth forecasts for 2017 and 2018, a regional outlook report updated by the bank showed.

The World Bank released its East Asia and Pacific (EAP) Economic Update, a review of economies in the region published twice yearly, yesterday. The World Bank has raised China's 2017 and 2018 economic growth forecasts by 0.2 and 0.1 percentage points to 6.7 percent and 6.4 percent, respectively.

The growth in China, however, is projected to moderate in 2018 and 2019 to around 6.4 percent as the economy is shifting from investment and external demand to domestic consumption over the medium term, state-run Xinhua News Agency quoted Sudhir Shetty, the bank's chief economist for the EAP region, as saying. Sustained reforms of the state-owned enterprise sectors in China can improve growth prospects, the bank added.

The World Bank also revised its GDP growth forecasts for the region, raising them 0.2 and 0.1 percentage points to 6.4 percent and 6.2 percent, respectively, for 2017 and 2018. The uptick in growth in 2017 relative to earlier expectations reflects stronger than expected growth in China, at 6.7 percent, said the October 2017 edition of the East Asia and Pacific Economic Update.

However, the bank warned of potential domestic and external risks that could impact the regional outlook.  Among them are possible early monetary tightening in Europe and the US, rising trade protectionism and geopolitical tensions over North Korea that could cause supply disruptions and make investors shy away from the region.

"The challenge will be for countries to strike a balance between prioritizing short-term growth and reducing medium-term vulnerabilities, so that the region has a stronger foundation for sustained and inclusive growth," said Victoria Kwakwa, World Bank vice president for the EAP region.