Mubasher: Growth in developing East Asia and Pacific is still resilient, but likely to ease down within 2016-2018, according to a latest World Bank report.

This outlook is mainly ascribed to increasing risks and challenges that countries face, said the bank adding that countries should deepen structural reforms, while prioritizing monetary and fiscal policies that limit vulnerabilities, strengthen credibility, the bank reported.  

Growth in East Asia is likely to move down from 6.5% in 2015 to 6.3% in 2016 and to 6.2% during 2017-18.

As a reflection, China’s growth rate will gradually slow down from 6.9% in 2015 to 6.7% in 2016 and to 6.5 in 2017.

Growth in Asian developing countries, excluding Chia, increased by 4.7% in 2015 and is expected to slightly rise by 4.8% in 2016 and to 4.9% during 2017-18 powered by growth in the large Southeast Asian economies.

Sudhir Shetty, Chief Economist of the World Bank’s East Asia and Pacific Region, said “Developing East Asia and Pacific faces elevated risks, including a weaker-than-expected recovery in high-income economies and a faster-than-expected slowdown in China. At the same time, policy makers have less room to manoeuver in setting macroeconomic policy.”

“Countries should adopt monetary and fiscal policies that reduce their exposure to global and regional risks, and continue with structural reforms to boost productivity and promote inclusive growth.”, the Chief Economist added.