[111012.EN.BIZ] World Bank : Asian Growth To Slow, But Domestic Demand Will Spark Rebound

ECONOMIC growth in the East Asia and Pacific region is expected to slow from 8.2 per cent in 2011 to 7.2 per cent this year, before recovering to 7.6 per cent in 2013, according to the World Bank in its East Asia and Pacific Economic Data Monitor.

Growth in developed countries will remain modest, with recovery in the region to be driven mainly by strong domestic demand in developing countries, said the World Bank study.

The new report says that weak exports and lower investment growth will cut down China's GDP growth from 9.2 per cent in 2011 to 7.7 per cent this year. But China's growth is expected to rebound next year to 8.1 per cent as the impact of stimulus measures kicks in, supported further by an uptick in global trade.

"The east Asia and Pacific region's share in the global economy has tripled in the last two decades, from six per cent to almost 18 per cent today, which underscores the critical importance of this region's continued growth for the rest of the world," said World Bank president Jim Yong Kim.

Said World Bank regional vice president Pamela Cox: "Weaker demand for East Asia's exports is slowing the regional economy, but compared to other parts of the world, it's still growing strongly, and thriving domestic demand will enable the region's economy to bounce back to 7.6 per cent next year."

The report said reconstruction spending in Thailand after last year's floods is among the factors buttressing domestic demand in the region. In addition, countries like Indonesia - together with Thailand and Malaysia - are currently enjoying a boom in spending by their governments and the private sector on capital goods.

Source : HKSG.