Friday, 09 June 2023 07:09 GMT

World Bank Forecasts Higher Growth in East Asia, Pacific Region in 2023


(MENAFN) The World Bank has released a statement estimating higher growth in the East Asia and Pacific (EAP) region in 2023. Developing East Asia and the Pacific is predicted to accelerate to a 5.1 percent growth rate in 2023, up from 3.5 percent in 2022. China's reopening from the quarantine measures of the coronavirus pandemic is expected to help the world's second-biggest economy rebound to a 5.1 percent expansion this year, up from 3 percent last year.

World Bank East Asia and Pacific Vice President, Manuela V. Ferro, stated that most major economies in the region have gone through the difficulties of the pandemic but "must now navigate a changed global landscape." She added that "to regain momentum, there is work left to do to boost innovation, productivity, and to set the foundations for a greener recovery."

The international financial institution also identified three significant challenges that economies in the region must cope with: rising tensions between major trading partners, the rapid aging of the major economies of East and Southeast Asia, and exposure to climate risks.

The statement noted that most countries in the EAP region have experienced two decades of higher and more stable growth than economies in other regions. This has resulted in a significant decline in poverty and, in the last decade, a decline in inequality. However, the catch-up to the per capita income levels of advanced economies has stalled in recent years as productivity growth and the pace of structural reforms has slowed.

To overcome these challenges, the World Bank highlighted the need to boost innovation, productivity, and structural reforms. Additionally, the region needs to set the foundations for a greener recovery and address the challenges posed by climate risks. The World Bank's forecast of higher growth in the EAP region in 2023 is a positive sign for the global economy, but there are still challenges that need to be addressed to ensure sustainable and inclusive growth in the region.

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