East Asia remains fastest growing region: World Bank

World Bank predicts that East Asia Pacific region will grow at an average rate of 7.1 percent in 2014

World Bank predicts that East Asia Pacific region will grow at an average rate of 7.1 percent in 2014

ANKARA - Emerging economies in the East Asia Pacific are growing steadily whilst being supported by the recovery in high-income countries, World Bank announced on Monday.

According to the East Asia Pacific Economic Update, the World Bank predicted a steady growth for emerging East Asia Pacific economies such as China, Indonesia, Malaysia and Thailand, bolstered by recovery in high income countries and the limited response of the global economy to the tapering of Quantitative Easing.

“Stronger global growth this year will help the region expand at a relatively steady pace while adjusting to tighter global financial conditions.” said Axel van Trotsenburg, World Bank East Asia and Pacific Regional Vice President.

The report estimates that the overall growth rate for emerging economies for East Asia will be 7.1 percent in 2014, preserving for them the title of fastest growing region in the world despite a slowdown compared to the average growth rate of 8 percent recorded between 2009-2013.

The developing countries of the region excluding China are expected to grow by 5.0 percent in 2014, slightly down from 5.2 percent last year.

However, the report cautions that there are still risks for these bright forecasts to materialize, such as unpredicted global interest rate hikes and slower recovery of high-income countries etc.

“A slower-than-expected recovery in advanced economies, a rise in global interest rates, and increased volatility in commodity prices on account of the recent geo-political tensions in Eastern Europe serve as reminders that East Asia remains vulnerable to adverse global developments,” said Bert Hofman, Chief Economist of the World Bank’s East Asia and Pacific Region.

To keep growth and market confidence at high levels, the World Bank advised countries of the region to increase their efforts for structural reforms to allow for their growth potential.

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