The Asian Development Bank (ADB) has forecasted that China's economic growth reach 6.5 percent in 2016, according to its Asia Development Outlook 2016.

"China's growth moderation and the uneven global recovery are weighing down overall growth in Asia," the report ntoed. It added that the region will still contribute more than 60 per cent of global growth this year.

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The report also highlighted the complexity of China's economic relationships in the region as supply chains evolve. While manufacturing powerhouses such as South Korea have lost market share because China has moved up the value chain, others such as Vietnam have benefited from taking over lower-end production from its giant neighbour.

"China will continue to struggle as it shifts from investment-led growth to an economy where consumption plays a larger role", the ADB said.

Last year services and consumption accounted for 4.6 percentage points of China's overall growth, up from 3.7 in 2014.

However, the ADB warned that governments around the region, including China, need to focus more on boosting productivity. Almost half the slowdown in average growth in the region between 2008 and 2014 was due to moderating potential growth.

China roiled global markets last summer as its authoritarian leaders tried to stop a huge stock bubble from bursting and its slowing economy from stalling.

Only Southeast Asia is projected to see growth rates improve in 2016, nudging up to an annual rate of 4.5 per cent from 4.4 per cent in 2015, the ADB said, before picking up to 4.8 per cent in 2017. Seven out of 10 members of the Association of Southeast Asian Nations (Asean) experienced weaker economic growth last year, including Indonesia, which underwent a fourth successive year of slowdown.

Tagschina, Asian Development Bank, South east asia, Economy slow down, economic growth, Vietnam, Indonesia