asia

East Asia, Pacific growth to rebound to 7.7% in 2021 – World Bank


SINGAPORE (ICIS)–Economic growth in the east
Asia and Pacific region is projected to
strengthen to 7.7% in 2021 from 1.2% last year,
primarily reflecting the strong rebound in
China, the World Bank said late on Tuesday.

Growth in China is projected to pick up to 8.5%
this year, up by 0.6 percentage point from a
previous projection, supported by buoyant
exports and the relief of pent-up demand amid
effective control of the coronavirus outbreak.

China’s economy expanded by 2.3% in 2020.

Growth in China is projected to moderate to
5.4% in 2022, “reflecting diminishing fiscal
and monetary support and tighter property and
macroprudential regulations”, the World Bank
said in a report.

Output in the rest of the East Asia and Pacific
region is projected to grow 4.0% in 2021 in the
face of continued pandemic-related headwinds
and delayed recovery of tourism and travel.

Output in two-thirds of the region’s economies
is expected to remain below pre-pandemic levels
until 2022.

“Regional growth has bounced back from 2020,
but the speed of recovery has differed among
countries. Among the three largest economies,
China, Indonesia, and Thailand, only China has
seen its output surpass pre-pandemic levels,”
the World Bank said.

The current pace of vaccinations could make it
difficult to achieve widespread vaccination in
many countries in Asia for some time, the World
Bank said.

“The adverse impacts of the pandemic could
persist in the region for a considerable
period, contributing to subdued investment and
an erosion of human capital,” it said.

The global economy is expected to expand 5.6%
in 2021, the fastest post-recession pace in 80
years, largely on strong rebounds from a few
major economies.

Despite the recovery, global output will be
about 2% below pre-pandemic projections by
2022.

“At current trends, global trade growth is set
to slow down over the next decade,” World Bank
Group vice president for equitable growth and
financial institutions Indermit Gill said.

“As developing economies recover from the
COVID-19 pandemic, cutting trade costs can
create an environment conducive to re-engaging
in global supply chains and reigniting trade
growth,” Gill said.

Photo: A man works in Cherry Wanda
autonomous driving bus base assembly line in
Guiyang, China. (Source: ALEX
PLAVEVSKI/EPA-EFE/Shutterstock)

Focus article by Nurluqman
Suratman



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