World Bank forecasts growth in Asia against a backdrop of protectionism and geopolitical tensions
China will top performance this and next year, but international crises could harm trade. Projections for Myanmar and the Philippines are revised downward. Things are looking better for Malaysia and Thailand.
Washington (AsiaNews/Agencies) – The World Bank has raised this year’s growth forecast for the developing economies of East Asia and the Pacific but warned about risks like rising protectionism and geopolitical tensions.
In its latest Economic Update for East and Pacific Asia published today, the financial institution states that with the exception of developed economies such as Japan and South Korea, China will leads the way with growth projection revised up 0.2 point to 6.7 per cent, and up 0.1 per cent to 6.4 per cent in 2018.
Yet, anxiety over international crises in the Korean Peninsula, Myanmar or the Philippines, could damper the outlook.
“Because of the region’s central role in global shipping and manufacturing supply chains, escalation of these tensions could disrupt global trade flows and economic activity,” the World Bank said.
For this reason, the bank revised downward growth forecasts for Myanmar, the Philippines, and other South East Asian countries.
Myanmar’s projection is down 0.5per cent in both this and next year, to 6.4 per cent and 6.7 per cent, respectively.
Forecasts for Malaysia and Thailand are expected to improve.
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