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.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam