UN Predicts Stable Economic Outlook for Asia-Pacific Countries

TEMPO.CO, Jakarta - Larry Maramis, United Nations' Regional Economic and Social Commission (ESCAP) Regional Advisor for ASEAN stated that economic prospect in the regions will remain stable, although riddled with uncertainty. "Therefore, we must observe domestic demands," Larry said on Thursday, April 28, 2016.

A socio-economic survey conducted by ESCAP in Asia-Pacific for the 2016 period revealed that domestic demands must assume larger role in supporting Asia-Pacific countries economic growth. However, the survey also forecasted that growth of domestic demands in the region will remain limited.

The survey explained that the limited growth is mainly caused by high debt ratio recorded by households and corporations in the past couple of years. As a result, a large portion of household and corporation income will be channeled to pay off debts, limiting growth of domestic demand.

Larry added that the Chinese economic slowdown will continue to contribute to economic growth risk factor. Therefore, Larry said that economic growth for 2016 and 2017 will remain at a level of 4.8 to five percent.

Larry asserted that export-based economic recovery will also experiencing a slowdown because of several factors, including "weak prospects of economic partner countries such as Japan and the European Union."

DIKO OKTARA