Faster growth in developing East Asia anticipated

Compared to 4.7 per cent in 2015, the growth rate excluding China is expected to rise to 4.8 per cent in 2016 and 4.9 per cent in 2017-18, according to World Bank's "East Asia and Pacific Economic Update".

Including China, growth in developing East Asia is expected to ease from 6.5 per cent in 2015 to 6.3 per cent in 2016 and 6.2 per cent in 2017-18. The forecast reflects China’s gradual shift to slower, more sustainable growth, expected to be 6.7 per cent in 2016 and 6.5 per cent in 2017, compared with 6.9 per cent in 2015.

However, the outlook for individual countries varies, depending on their trade and financial relationships with high-income economies and China, as well as their dependence on commodity exports.

“Developing East Asia and Pacific continues to contribute strongly to global growth. The region accounted for almost two-fifths of global growth in 2015, more than twice the combined contribution of all other developing regions,” said Victoria Kwakwa, incoming World Bank East Asia and Pacific Regional Vice President. “The region has benefited from careful macroeconomic policies, including efforts to boost domestic revenue in some commodity-exporting countries. But sustaining growth amid challenging global conditions will require continued progress on structural reforms.”