ISLAMABAD: The World Bank (WB) in its fresh revision has predicted its growth estimates for the East Asia and Pacific region, lowering the 2023 forecast to 5% from 5.1% projected earlier, according to its semi-annual outlook report released on Sunday. As per the report the growth rate for 2024 is expected to be 4.5%, whereas the region’s growth remains strong and healthy against other emerging markets and developing economies.
The revision can be accredited to improving external conditions backing the region’s growth, while persistent domestic issues in China pose challenges. The growth for China in 2023 is projected at 5.1%, whereas the rest of the region, is expected to grow at a rate of 4.6%. However, the growth in China is predicted to go down in the next year due to domestic difficulties including increasing debt, a weak real estate sector, etc.
Vice President for East Asia and Pacific at the World Bank Manuela V. Ferro in a statement has said that the East Asia and Pacific region remained one of the fastest growing and most dynamic regions in the world, even with moderate growth.
Growth in East Asia, Pacific and Rest of the World
The semi-annual outlook report further revealed that growth in the rest of the region could be marked up to 4.7% in 2024 as global recovery and relaxing financial conditions offset slowing growth in China and trade policy steps in other countries. The Vice President further said that maintaining high growth over the medium term would need reforms to maintain industrial competitiveness, diversify trading partners, and increase productivity in the services sector.
The World Bank also underscored potential downside factors including geopolitical tensions and natural disasters amid extreme weather incidents.
Meanwhile, Chief Economist Aaditya Mattoo of World Bank East Asia and Pacific, said that services reform and digitalization could generate a righteous cycle of enhancing economic opportunity and boosting human capacity towards development in the region. The combination of services reform and digitalization could create new opportunities and enhance people’s capacity to take advantage of these opportunities, the WB emphasized
