WASHINGTON, April 24 (Xinhua) -- The World Bank Group on Thursday projected that growth in East Asia and Pacific (EAP) will slow down to 4.0 percent in 2025, compared to 5.0 percent in 2024, according to its newly released 2025 Regional Economic Update.
Growing global uncertainty is having an impact on business and consumer confidence, inhibiting investment and consumption, the update showed. Trade restrictions are expected to impact EAP's exports while slower global growth is likely to further reduce external demand.
Despite slower growth, poverty rates in the region will "continue to decline," according to the World Bank.
The World Bank suggests a "three-pronged policy response." First, harnessing new technologies could boost productivity and as a result could create more jobs, as shown in Malaysia and Thailand. Second, reforms to boost competition, especially in services, could create new economic opportunities, as seen in Vietnam. Third, greater international cooperation can enhance resilience.
"While navigating global uncertainty, countries across EAP have the opportunity to strengthen their economic prospects by embracing and investing in new technologies, opening up business opportunities through bolder reforms, and deepening international cooperation," said Manuela V. Ferro, vice president of the World Bank for East Asia and Pacific.
World Bank East Asia and Pacific Chief Economist Aaditya Mattoo noted that combining new technologies with bold reform and innovative cooperation could help countries in the region cope with current environment and longer-term challenges. "That is the recipe for higher productivity and better jobs," he said.
