According to the World Bank. Economic growth in East Asia will be weakened.
According to Jim Yong Kim, President of the World Bank. The role of East Asia and Pacific region has tripled in the past two decades in the global economy. Growth of 6 per sent to 18 percent. Clearly the region's growing importance for the whole world.
Opinion broaden the economy of East Asia and the Pacific. Recent World Bank report said the economic growth in East Asia and the Pacific in the estimate down from 8.2 percent in 2011, to 7.2 in 2012. In the report of the World Bank in Jakarta on Monday's. At the mention that the economic growth in East Asia and the Pacific, will recover at 7.6 percent rate in 2013. Caused by domestic demand. This explains the weakening of export and investment growth, would cut gross domestic product growth (GDP) of China, from 9.3 percent in 2011 to 7.7 percent in 2012.
The growth of real domestic demand in China, as evidenced in the last year. The second quarter GDP growth was only 7.6 percent, compared to the previous year's growth. But in 2013. The growth of China's economy is expected to recover reach the level at 8.1 percent. As the impact of the stimulus package that the Chinese government has implemented, as well as an increase in the volume of global trade.
Pamela Cox, World Bank Vice President, for the East Asia and the Pacific. Explained that the falling demand for exports from East Asia is weakening economies in East Asia and the Pacific. Nonetheless East Asian economies will continue to grow stronger and increase in the appeal other regions.
These are reported to explain, even under the pressure of global crisis. The poverty level will decrease. Caused by the number of people living with the amount of revenue two dollars per day, is expected to decline from 28.8 percent in 2010 to 24.5 percent in 2013. The report also said. Infrastructure spending in Thailand after the flooding last year, becoming one of the factors that strengthen domestic demand in the countries, such as Indonesia, Thailand and Malaysia, who are now enjoying the sharp rise in public spending. As well as capital expenditure in the private sector.
Although this report suggests pressure from the European crisis gradually loosened, after the European Central Bank is committed. Defending the Euro zone, as well as buy the troubled European sovereign bonds. Followed by the U.S. Federal Reserve policy, relevant quantitative easing in order to boost growth and reduce unemployment. It has been successful in restoring global equity markets. Are reported also stated that a number of risks still ahead. If economic conditions in Europe declined sharply. Will affect developing countries. European crisis and a potential negative impact on the economies of East Asia and the Pacific. In the financial sector and trade.
The World Bank's chief economist for East Asia and the Pacific, Bert Hofman. Explain that, in the medium term. Seen an increase in productivity in East Asia and the Pacific. Will be more visible, as a middle-income neighborhood. Encouraging growth. Structural reforms. Business climate improvement. Infrastructure investment and further improve the quality of education. Becoming very important.
The World Bank report. Appealed. In order for policy makers in East Asia and the Pacific. Managing well to suppress the growth of poverty, amid global climate is still very volatile. Despite the expected increase in food prices, it will not affect East Asia, because the supply of rice market is still insufficient.
Jakarta, Indonesia, October 8, 2012/Tasch.
Souce : Antara News, Jakarta, Indonesia.