World Bank: The economy of East Asia and the Pacific remained strong in the next 3 years
The World Bank estimates assume that economic growth in the countries development in East Asia and the Pacific will remain strong the next 3 years. But the organization also warned that the region still faces major risks to growth and many countries need to take steps to reduce vulnerability fiscal and financial vulnerabilities.
The economy of the developing countries in East Asia will rise to 5.8 percent in 2016 and 5.7 percent in 2017 and 2018. According to the report, the current economic situation for East Asia and the Pacific, which was released on October 4.
This report expects China's economic growth will continue to slow down gradually from 6.7 percent this year to 6.5 percent in 2017 and 6.3% in 2018. But the economic growth of the country other than China in this area is estimated to hold steady at 4.8 percent this year and up to 5 percent in 2017 and 5 , 1 percent in 2018.
Mrs. Victoria Guangzhou Guangzhou Bank Vice President for East Asia and the Pacific, said: 'Prospects for the development of East Asia and Pacific region remain positive weakness of the world's economic growth and external demand are balanced by strong domestic consumption and investment goods. She said: 'The challenge is to sustain long-term economic growth and growth in all sectors, including narrow the income gap and access to public services, particularly in China, to improve infrastructure in all countries in the region, reducing child malnutrition persists and use of the potential of technology to push for raising finance.
According to the report, growth in China will slow down because the country continues to maintain a balance in the use of goods, services and value-added activities and higher because of excess industry capacity has been reduced. However, the tight labor market will support income growth and private consumption is continuing.
In particular, among other major countries, the highest forecast in the Philippines, where the expected growth in the country will rise to 6.4 percent in this year, as in Vietnam, economic growth will decline due to the severe drought, but will increase to 6.3 percent in 2017. But in Indonesia's stable economic growth will increase from 4.8 percent in 2015 to 5.5 percent in 2018, based on an increase in public investment and success of efforts to improve the investment climate and increase national income. In Malaysia, growth will fall from 5 percent in 2015 to 4.2 percent in 2016 due to demand, oil production and exports in the world decreased.
Among the smallest countries on the forecast growth in these countries has decreased considerably on the shipments. Mongolia's economy is estimated to grow by only 0.1 percent, down from 2.3 percent in 2015 due to the decrease mineral exports and less effort to control debt. Papua New Guinea will have economic growth rose to 2.4 percent in 2016, down from 6.8 percent in 2015 due to sluggish Prices and yields metals, copper and natural gas. In contrast, economic growth in Cambodia, Laos and Myanmar will remain strong.
For Sweden, Dean White, chief economist of the World Bank's East Asia and Pacific forecasting economic growth in the region, depending on the major risks and financial restrictions strong globally further decline of the world's economic growth or decline faster than expected economic China will test the strength of the economy of East Asia. He added that these uncertainties, it is important for policy makers to reduce the fiscal and financial imbalances has increased in the last few years .
Immediate priorities include reforms to improve the sector and its overall credit growth under control in China to reduce the increased risk domestic and foreign finance in other major countries to maintain fiscal and increasing source of income throughout the region, particularly for manufactured goods and in response to the risk for fiscal sustainability in Mongolia and E. Timor.
For the longer term, the report said 4 that political measures can enhance economic growth in all sectors. 1. The report recommends that China build on its past success in reducing poverty through improved access to basic public services for people living in rural areas and for migrants to the city, which is still growing. 2 other countries in the region need to fill the infrastructure gap through re-balancing public spending to increase cooperation between the public and private management and improve the efficiency of public investment. 3. The report urged policy makers to tackle widespread malnutrition. Child malnutrition is high in many countries, even in rich countries likewise and that this will also affect the health and the growth of the brain, which is very difficult to save up. The report recommends a coordinated action across sectors, including early childhood development programs and micro-nutrition interventions.
The final report recommends countries to use the potential of technology to change the financial services and increase the additional finance. This technological progress, which has a large influx of mobile phones but lack access to financial services. However, to benefit from financial modernization, countries will need to strengthen the legal and regulatory framework and enhance consumer protection.