The World Bank revised its growth estimates for 2019 for the East Asia and Pacific (EAP) region on Thursday. The revisions were made about on account of the international economic fluctuations and trade stand-offs brewing currently and looming to widen further in the forthcoming months.
As such, according to a report published by the World Bank, the authority has reduced its estimates for the region by about 0.1% for 2019, bringing it down to 6% from its initial estimation of 6.1% made in April 2018. Likewise, it has also brought down its estimate for this year from 6.6%, which was made in 2017, to about 6.3%.
The World Bank report, however, kept its estimates of growth for 2020 unchanged at 6%. The expected growth for the Chinese economy was also cut by the World Bank in its report. The economic growth for China for 2019 was reduced by about 0.1% to about 6.2% from its initial estimation of 6.3%.
A Reuters report quoted the World Bank's chief economist for the region in this regard. Sudhir Shetty, the chief economist stated, "The main risks to continued robust growth include an escalation in protectionism, heightened financial market turbulence, and their interaction with domestic fiscal and financial vulnerabilities.
In this context of rising risks, developing EAP economies need to utilize the full range of available macroeconomic, prudential and structural policies to smooth external shocks and raise potential growth rates."