Growth in developing economies in East Asia is holding up despite tough global conditions and a slowdown in China, according to the World Bank.
The Washington-based lender lowered its growth forecast for this year for developing East Asia and Pacific countries only marginally to 6.3 per cent from 6.4 per cent, it said in a report on Monday. Growth is set to ease from an estimated 6.5 per cent in 2015, it said.
While developing nations in East Asia — from Indonesia to China — have benefited from careful economic policies, global risks are considerable and threaten the region’s outlook, the lender said. Among these are a slowdown in high-income countries, the slump in exports and financial market volatility.
“Policy makers have less room to maneuver,” Sudhir Shetty, chief economist of the World Bank’s East Asia and Pacific region, said in a statement. “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.”