Developing East Asia and Pacific is expected to grow more than previously projected this year on continued broad-based global recovery and strong domestic demand.
According to the latest regional economic forecast, developing east Asia and Pacific is forecast to expand 6.3 percent in 2018, instead of 6.2 percent projected last October.
Nonetheless, this is slower than the 6.6 percent estimated for 2017. The outlook for 2019 was retained at 6.1 percent.
Excluding China, growth in developing East Asia and Pacific is expected to remain stable at 5.4 percent in 2018, before slowing slightly to 5.3 percent in 2019.
China's expansion is expected to slow moderately this year as its continues to re-balance. The economy is projected to grow 6.5 percent this year and 6.3 percent next year.
The agency cautioned developing East Asia and Pacific countries to be prepared to address the risks associated with monetary tightening in advanced economies.
Despite a positive growth outlook for the region, policymakers are also advised to address the short-term risks associated with possible escalation of trade tensions.
Further, the lender advised countries to consider tightening monetary policies, further strengthening macroprudential regulation, and building fiscal buffers.
In order to reverse moderating growth prospects over the medium-term, countries will need to find ways to raise long-term potential growth, including improving public spending and deepening trade integration among other things.
by P2PNews Staff Writer