World News | East Asia and Pacific growth to accelerate to 5.1% in 2023 as China recovers

washington [US]April 2 (ANI/WAM): Growth in developing East Asia and the Pacific is expected to pick up in 2023 as China’s economy reopens, while most of the rest of the region’s The report said it rebounded strongly last year.

According to the World Bank’s April 2023 East Asia and Pacific Economic Update, the region’s economic performance, while strong, could be hampered this year by slower global growth, higher commodity prices and tightening financial conditions to combat persistent inflation .

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Growth in developing East Asia and the Pacific is expected to accelerate to 5.1 percent in 2023 from 3.5 percent in 2022, as China’s reopening helps the economy rebound to 5.1 percent from 3 percent last year. Growth outside China is expected to slow to 4.9% in 2022 from a strong post-COVID-19 rebound of 5.8% in 2022 as inflation and rising household debt in some countries weigh on consumption.

“Most major economies in East Asia and the Pacific have weathered the pandemic but must now grapple with a changed global landscape,” said Manuela Ferro, World Bank East Asia and Pacific vice president.

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“There is much work to be done to regain momentum, boost innovation and productivity, and lay the groundwork for a greener recovery.”

Among the region’s larger economies, most, including Indonesia, the Philippines and Vietnam, are projected to grow more modestly in 2023 than in 2022. Most Pacific island countries are expected to grow faster in 2023, but the pace of Fiji’s unusually strong economy in 2023 is likely to slow in 2022.

Most countries in the EAP region have experienced higher and more stable growth over the past 20 years than economies in other regions. The result has been a significant reduction in poverty and, over the past decade, a reduction in inequality. However, in recent years advanced economies have stalled in catching up with per capita income levels as productivity growth and the pace of structural reforms have slowed.

Addressing major “reform gaps”, especially in services, could amplify the impact of the digital revolution and boost productivity in sectors ranging from retail and finance to education and health.

Economies in the region must also address three important challenges as policymakers act to sustain and accelerate economic growth in the wake of COVID-19. Rising tensions between major trading partners will affect trade, investment and technology flows in the region.

The rapid aging of major economies in East and Southeast Asia heralds a new set of challenges and risks, with implications for economic growth, fiscal balances, and health. Finally, the region is particularly vulnerable to climate risk, partly because of its high population density and economic activity along its coast.

“Deglobalization, aging and climate change are clouding the growth prospects of a region that thrives on trade but is aging rapidly,” said Aaditya Mattoo, World Bank Chief Economist for East Asia and the Pacific. “However, boosting trade , addressing population dynamics and building climate resilience can boost growth.” (ANI/WAM)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)