Strong domestic demand hikes East Asia & Pacific growth

The challenge for policy makers now is to build on these strengths and address short and long term challenges with smart policies:

Policymakers need to continue to be vigilant to react to shocks in the world economy, but be prepared to withdraw stimulus as the world economy recovers.  For countries that show some signs of inflationary pressures, it would be a good time to rebuild policy buffers.

Several countries need to manage strong capital inflows by maintaining an appropriate macro policy mix, sufficient flexibility in the exchange rate and macro-prudential policies.

Most countries could increase productive capacity by investing in infrastructure and human capital, and thus pave the way for continued high and equitable growth.

World Bank