Despite a less favorable external environment, the growth outlook for developing East Asia and Pacific (EAP) remains positive, according to the latest World Bank economic report on the region released today (Oct 4).
Growth in developing EAP is expected to be 6.3% in 2018, lower than in 2017 due to the continued moderation in China’s growth as its economy continues to rebalance.
Navigating Uncertainty, World Bank says, underscores however that in recent months a combination of trade tensions, higher US interest rates, a stronger US dollar, and financial market volatility in many emerging economies has increased the uncertainty around the region’s growth outlook.
China is expected to slow moderately to 6.5% in 2018, after growing faster than anticipated in 2017. Growth in developing EAP, excluding China, is expected to remain stable at 5.3% from 2018 to 2020, driven primarily by domestic demand. Indonesia’s growth should be stable, thanks to improved prospects for investment and private consumption.