OECD Forecasts Robust Growth for Southeast Asia, China, India

TEMPO.CO, Jakarta - Economic growth over the coming four years will remain robust at an average rate of 6.5 percent real GDP in Southeast Asia, China and India, according to the latest Economic Outlook for Southeast Asia, China and India 2016 report by the Organization for Economic Co-Operation and Development (OECD).

Exports will play a smaller role in the coming years compared to the past decade in contributing to growth while "private consumption will be a large contributor," the report overview says.

Kensuke Tanaka, Head of Asia Desk OECD Development Centre, presented the overview of the report, which will be released on January 29, 2016, on Thursday, January 21, 2016, at the OECD, and Economic Research Institute for ASEAN and East Asia (ERIA) joint seminar. The 2016 report focuses on 'enhancing regional ties' and integration to promote growth.

Tanaka outlined several key integration challenges for the region over the next four years including "better harmonization of regional, sub-regional and national planning," as well as "more detailed, transparent and regularly updated monitoring systems" for the ASEAN community.

The overview also forecasted that growth in India will reach the highest in the region as China's growth continues to slow. The slowdown in China will primarily be felt in terms of export demand and a decline in investment flow. Indonesia may be impacted less with merchandise exports to China representing three percent share of GDP compared with Malaysia's 12 percent.

"In general, the Southeast Asia region will maintain a favourable growth performance in the medium term," the report stated.

NATHAN BROWN