SINGAPORE—East Asia remains one of the main growth drivers of the world economy, accounting for nearly two-fifths of global economic growth, according to a new World Bank report. Overall, the region is expected to grow 6.5 percent in 2015, moderating slightly from 6.8 percent last year.
“Growth in developing East Asia Pacific continues to be solid, but the moderating trend suggests policy-makers in the region must remain focused on structural reforms that lay the foundation for sustainable, long-term and inclusive growth. These reforms include regulatory improvements in finance, labor and product markets, as well as measures that enhance transparency and accountability. These policies will reassure investors and markets, and help sustain growth that can help lift people out of poverty,” Axel van Trotsenburg, World Bank East Asia and Pacific Regional Vice President said.
The East Asia Pacific Economic Update released recently looks at the challenging global environment facing the region. The recovery in high-income economies remains gradual, global trade is growing at its slowest pace since 2009, and the widespread slowdown in developing countries has intensified, particularly in commodity producers affected by lower commodity prices.
The performance trends across East Asia are diverse. China’s economy is expected to grow at about 7 percent this year and gradually moderate thereafter, as its economy continues to shift toward a model more dominated by domestic consumption and services, which implies a gradual reduction of growth.