World Bank reviews Asian growth
(20 October 2010 – Asia) The World Bank has raised its 2010 economic outlook for developing East Asian countries, however warned of slower growth and potential asset bubbles ahead as foreign capital surges into the region.
This year, the bank expects gross domestic product for the developing region, which excludes Hong Kong, South Korea, Singapore and Taiwan, to rise 8.9 percent, up 0.2 percentage points from its previous estimate in April. Yet growth could moderate to 7.8 percent in 2011 as governments unwind stimulus measures and overall growth in advanced economies remains flat.
In a recent report on the region the bank also warned that large capital inflows, rising asset prices and inflationary pressure pose 'an emerging policy challenge and a growing risk to macroeconomic stability.'
During the recession and sputtering recovery, East Asia's expansion has eclipsed that of other parts of the world, attracting an influx of foreign capital. Such capital has become a point of concern for Asian governments.
Within developing East Asia, China is growing the quickest, with its economy expected to expand 9.5 percent this year.
For the first time in a decade, the GDP of five other countries
in the region, Thailand, Malaysia, Laos, Mongolia and Papua New Guinea, could each climb at least 7 percent in 2010, the World Bank said.
In a recent report on the region the bank also warned that large capital inflows, rising asset prices and inflationary pressure pose 'an emerging policy challenge and a growing risk to macroeconomic stability.'
During the recession and sputtering recovery, East Asia's expansion has eclipsed that of other parts of the world, attracting an influx of foreign capital. Such capital has become a point of concern for Asian governments.
Within developing East Asia, China is growing the quickest, with its economy expected to expand 9.5 percent this year.
For the first time in a decade, the GDP of five other countries
in the region, Thailand, Malaysia, Laos, Mongolia and Papua New Guinea, could each climb at least 7 percent in 2010, the World Bank said.
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