The World Bank said in a report issued today, Friday, that developing economies in Asia have regained most of the gains they lost during the pandemic, but their recovery is faltering with the decline in productivity.
The report expected growth in the region, including China, to pick up this year after Beijing eased restrictions on travel and other activities, but recovery elsewhere in the region, with the exception of China, will ease as inflation pressures slow and household debt increases in consumer spending.
The report said economies across the Asia-Pacific region are expected to grow at an annual pace of 5.1% this year, up from 3.5% in 2022. But excluding China, growth is expected to slow to 4.9% in 2023 after recovering from the worst of the pandemic. by 5.8% in 2022.
The major Asian economies such as Indonesia, the Philippines, Thailand and Vietnam will witness a slow recovery, and at the same time they will face risks from weak global growth and the repercussions of the events related to Ukraine and the disasters of climate change.
Demand for exports from the region has slowed as the US Federal Reserve and other central banks target inflation by raising interest rates, making it more expensive to buy on credit or take out mortgages.
At the same time, China’s economy has slowed considerably over the long term, even as it recovers from the disruptions caused by the pandemic.
Private economists have also cut their growth forecasts for the region this year, citing the possibility that tighter monetary policies could trigger a recession in the US or other major economies. Many countries in the region are grappling with burdensome debt burdens after spending lavishly during the pandemic, while households have also borrowed heavily.
This article was originally published by RT.
