East Asia Faces Growth Slowdown, World Bank Warns

China’s economic re-balancing will shave a few percentage points off its neighbors’ growth outlook in the coming years, the World Bank announced on Wednesday.

Gross domestic product (GDP) in developing East Asia will ease to 6.3 percent in 2016 and 6.2 percent in 2017-18, versus 6.5 percent in 2015, the Washington-based institution predicted in a new report, adding that the forecasts reflected China’s transition to a slower, more sustainable growth model.

“Developing East Asia and Pacific faces elevated risks, including a weaker-than-expected recovery in high-income economies and a faster-than-expected slowdown in China,” said Sudhir Shetty, chief economist of the World Bank’s East Asia and Pacific region. “At the same time, policy makers have less room to maneuver in setting macroeconomic policy.”


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.