The Asian Development Bank (ADB) yesterday marked down its forecast on China's year-on-year economic growth to 7 percent from 8.2 percent for this year, but said it could pick up to 8 percent next year with the country's "sound financial footing" and "necessary tools" at its disposal.

The bank's projection for this year is 1 percentage point lower than the Chinese government target of 8 percent growth, because the impact of the global financial crisis on the country is much worse than previously thought, the bank said in its latest Asian Development Outlook released yesterday.

The unfolding global financial turmoil has dragged China's year-on-year GDP growth down to 9 percent last year as a result of a sharp slowdown in industry and plummeting exports. The World Bank earlier forecast China's economic growth might dip to 6.5 percent this year due to the much weaker external demand and gloomier global economic outlook, while the Organization for Economic Cooperation and Development put it at a slower 6.3 percent in its report launched yesterday.