Thu, Oct 06, 2016 - Page 10 News List

World Bank raises East Asia growth view for this year

Reuters, SINGAPORE

The World Bank yesterday slightly raised its economic growth forecast for this year for developing East Asia and the Pacific (EAP), saying that Brexit is unlikely to have any significant near-term impact on growth in the region.

The Washington-based lender expects the region, which includes China, to grow 6.4 percent this year and 6.2 percent next year.

Its previous forecast in April was for 6.3 percent growth this year and 6.2 percent next year.

“Growth in the region is expected to remain broadly resilient during 2016-2018,” the World Bank said in its latest East Asia and Pacific Economic Update report.

The bank kept its growth forecasts for China unchanged at 6.7 percent and 6.5 percent this year and next respectively, but trimmed its 2018 growth view for China by 0.2 percentage points to 6.3 percent.

Growth projections for Thailand were raised to 3.1 percent for both this year and next, up from 2.5 percent and 2.6 percent previously.

“In Thailand, growth will recover gradually to 3.3 percent in 2018, reflecting the effects of increased public investment, improving consumer confidence, and continued expansion in services including tourism,” the World Bank said.

However, it said its baseline view for the region faces significant risks, such as China’s ongoing economic slowdown and any sharp tightening in global financial conditions that could reduce capital flows to the region.

Britain’s looming separation from the EU is unlikely to have a large impact on the region in the short term, given its limited direct trade and financial links with the UK.

The UK accounts for less than 2 percent of total exports across most of developing East Asia and Pacific, and accounts for a limited share of total foreign direct investment flows to the region, the bank said.

“In the medium term, Brexit will imply a renegotiation of developing EAP’s trade and investment agreements with the United Kingdom, and may also affect their trade relations with the European Union,” the bank said.

This story has been viewed 1456 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top