World Bank sees E. Asian economies growing steadily this year
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E-mail Xinhua, April 7, 2014
The economies of developing countries in East Asia Pacific Region was forecast to accelerate steadily pace of 7.1 percent this year, as the economies in the high income countries recover amid modest response so far to the Fed's tapering policy, the World Bank said on Monday.
The international lender revealed on its website that the figure remained the fastest growth globally, yet it is lower compared to average growth rate of 8.0 percent from 2009 to 2013.
"Stronger global growth this year will help the region expand at a relatively steady pace while adjusting to tighter global financial condition," World Bank East Asia and the Pacific Regional Vice President Axel van Trotsenburg said in the website.
In China, the bank projected the GDP at 7.6 percent this year, slightly falling from 7.7 percent last year. But, without China, the growth was forecast at 5.0 percent in 2014, slightly decreasing from 5.2 percent from 2012.
Larger economies in Southeast Asia, such as Indonesia and Thailand, would face tougher global financial condition and higher level of household debt. Malaysia's GDP would expand modestly to 4. 9 this year and the growth in the Philippines would ease to 6.6 percent, yet accelerating reconstruction spending would make up the whittling down on consumption from the effect of catastrophe in 2013.
The international lender called the countries in the region to ramp up structural reforms as it warns that risks of global adverse global development linger.
"Over the longer term, to keep growth high, developing East Asia should redouble efforts to pursue structural reforms to increase their underlying growth potential and enhance market confidence," Bert Hofman, chief economist of the World Bank's East Asia and Pacific Region said in the statement in the website.
"A slower-than-expected recovery in advanced economies, a rise in global interest rates, and increased volatility in commodity prices on account of recent geo-political tensions in Eastern Europe serve as reminders that East Asia remains vulnerable to adverse global developments," he said.
Hofman said that structural reforms are keys to reducing vulnerabilities and enhancing the sustainability of long-term growth.
China has already commenced a series of reforms in finance, market access, labor mobility and fiscal policy to increase the efficiency of growth and boost domestic demand.
Over time, these measures will put the economy on a more stable, inclusive and sustainable footing
Successful reforms in China could bring considerable benefits to trade partners supplying it with agricultural products, consumption goods and modern services. Endi
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