Home / Knowledge / News / Textiles / World Bank sees robust growth for East Asia Pacific
World Bank sees robust growth for East Asia Pacific
20
Apr '15
Economic growth will ease slightly in developing countries in East Asia and Pacific this year, even as the region benefits from lower oil prices and a continued economic recovery in developed economies, says a World Bank report.
 
According to the Bank’s East Asia Pacific Economic Update, the developing economies of East Asia are projected to grow by 6.7 per cent in 2015 and 2016, slightly down from 6.9 per cent in 2014. China’s growth is expected to moderate to around 7 per cent in the next two years compared with 7.4 per cent in 2014. Growth in the rest of developing East Asia is expected to rise by half a percentage point, to 5.1 per cent this year, largely driven by domestic demand—thanks to upbeat consumer sentiment and falling oil prices—in the large Southeast Asian economies. Several smaller economies, especially commodity exporters such as Mongolia, will see lower growth.
 
“Despite slightly slower growth in East Asia, the region will still account for one-third of global growth, twice the combined contribution of all other developing regions,” said Axel van Trotsenburg, World Bank East Asia and Pacific regional vice president. “Lower oil prices will boost domestic demand in most countries in the region and provide policy makers a unique opportunity to push fiscal reforms that will raise revenues and reorient public spending toward infrastructure and other productive uses. These reforms can improve East Asia’s competitiveness and help the region retain its status as the world’s economic growth engine.”
 
Low global oil prices will benefit most developing countries in East Asia, especially Cambodia, Laos, the Philippines, Thailand, and the Pacific island countries. But the region’s net fuel exporters, including Malaysia and Papua New Guinea, will see slower growth and lower government revenues. In Indonesia, the net impact on growth will depend on how much a decline there will be for its coal and gas exports.
 
The headwinds facing the world economy continue to pose risks to East Asia’s globally-integrated economies. The recovery in high-income countries continues to be slow and uneven, and a downturn in the eurozone and Japan would weaken global trade. Higher US interest rates and an appreciating US dollar, along with diverging monetary policy paths across advanced economies, could raise borrowing costs, generate financial volatility and reduce capital flows to East Asia. The continued strengthening of the dollar against other major currencies also could hurt highly-dollarized economies such as Cambodia and Timor-Leste.
 
In most of the larger East Asian economies, efforts to bolster revenues and restructure spending can help fill the gap in infrastructure investments and create more funding for social protection and insurance programmes, which are already under pressure amid rapid aging in the region, the report says. The report said that in the major fuel exporting countries and Mongolia, fiscal consolidation is required. (SH)
 

Fibre2fashion News Desk - India


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search