World Bank: East Asia to Experience 7.1 Percent Growth

TEMPO.CO, Jakarta - The World Bank estimated that economic growth in East Asia region will be stable in 2014. One of factors that support economic stability in the region is the relatively cold response delivered by the market towards the tapering off policy by The Federal Reserve.

World Bank forecast East Asia's economy to grow by 7.1 percent this year, which is not really different the percentage recorded in 2013. "[The] East Asia-Pacific [region] has become the main driving force of world's economic growth since the global financial crisis [started]," said Axel van Tritsenburg, World Bank East Asia and Pacific Regional Vice President, in a press release on Monday, April 7, 2014.

Tritsenburg said that even though East Asia has experienced eight percent slowdown in the last five years, it is still considered to be a region with the highest economic growth in the world.

Meanwhile, China's economic growth is predicted to decrease from 7.7 percent last year to 7.6 percent this year, while developing countries in East Asia is predicted to experience a five percent growth, lower compared to the 5.2 percent rate recorded last year.

Southeast Asia is expected to face various changes such as global financial condition and high household debt. Majority of islands in the Pacific region and Timor Leste, for example, still depend on support and funds from developed countries.

For Indonesia, the World Bank stated that economic growth in 2014 will reach 5.3 percent, lower compared to the 5.8 percent growth last year. General elections is predicted not have much effect on economic growth.

In Cambodia, post-election process is expected to help stabilize the country's economic growth at 7.2 percent this year, while Malaysia is estimated to experience a 0.2 percent increase in economic growth rate, from 4.7 percent last year to 4.9 percent this year. Myanmar and Vietnam's economy are expected to growth by 7.8 percent and 5.5 percent, respectively.

TRI ARTINING PUTRI