TEMPO.CO, Jakarta - The World Bank recently issued a report stating growth in developing East Asia and Pacific is expected to remain resilient over the next three years.
Despite the positive outlook, the region still faces significant risks to growth, and countries need to take measures to reduce financial and fiscal vulnerabilities.
For longer terms, the report recommended countries to address constraints to sustained and inclusive growth, including filling infrastructure gaps, reducing malnutrition and promoting financial inclusion.
The report, titled 'East Asia and Pacific Economic Update' expected China to continue its gradual transition to slower, more sustainable growth, from 6.7 percent this year to 6.5 percent in 2017 and 6.3 percent in 2018.
Meanwhile for the rest of the region, growth is predicted to remain stable at 4.8 percent in 2016, increasing to five percent in 2017, and 5.1 percent in 2018. Overall, developing East Asia is expected to grow at 5.8 percent in 2016 and 5.7 percent in 2017 to 2018.
"The outlook for developing East Asia and Pacific remains positive, with weakness in global growth and external demand offset by robust domestic consumption and investment," said Victoria Kwakwa, World Bank Vice President for East Asia and Pacific.
Victoria added that the long term challenge would be to sustain growth and make it more inclusive by shrinking income gaps and providing access to public services, specifically in China. In addition, Victoria said that improving infrastructure across the region along with reducing child maltrunition and stimulating financial inclusion are essential sustain growth.
MAHINDA ARKYASA
