Economic growth in east Asia, Pacific to rise to 7.9% in '13

16 January 2013 02:13  [Source: ICIS news]

SINGAPORE (ICIS)--Economic growth in east Asia and the Pacific is expected to rise to 7.9% in 2013 from 7.5% last year, tracking the projected improvement in the global economy, the World Bank said late on Tuesday.

The slowdown in both regions in 2012 was largely a result of weak external demand and policy actions by China to curtail its inflation, according to the World Bank’s latest “Global Economic Prospects” report.

China recorded an 8.3% growth in 2011, the World Bank said.

China’s economy is expected to expand by 8.4% in 2013, before easing to 7.9% by 2015.

Excluding China, regional growth is projected to average at 5.9% over 2013-2015 on the back of strong domestic demand and increased global trade flows, the World Bank said.

The World Bank estimated that the global gross domestic product (GDP) grew by 2.3% in 2012.

“[Global] growth is expected to remain broadly unchanged at 2.4% growth in 2013, before gradually strengthening to 3.1% in 2014 and 3.3% in 2015,” it said.

Looking ahead, the World Bank warned that the global economy remains fragile as high-income countries continue to suffer from volatility and slow economic growth.

“While diminished, downside risks to the global economy persist and include a stalling of progress on the euro area crisis, debt and fiscal issues in the US, the possibility of a sharp slowing of investment in China and a disruption in global oil supplies,” it said.

“In this weak external environment, growth for developing countries will need to come from within by strengthening governance and investing in infrastructure, education and health care,” the World Bank added.

By: Nurluqman Suratman

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