Connect with us

Hi, what are you looking for?

News

World Bank slashes East Asia growth outlook for 2022

REUTERS

MANILA – Economic growth in East Asia and the Pacific will weaken sharply in 2022 due to China’s slowdown, but the pace of expansion will pick up next year, the World Bank said on Tuesday.

The Washington-based lender said in a report it expected 2022 growth in the East Asia and Pacific region, which includes China, to slow to 3.2%, down from its 5.0% forecast in April, and the previous year’s growth of 7.2%.

The weaker forecast was due mainly to a sharp slowdown in China, caused by its strict zero-COVID rules that have disrupted industrial production, domestic sales and exports, the World Bank said.

China, which constitutes 86% of the 23-country region’s economic output, was projected to grow 2.8% this year, a significant deceleration from the bank’s previous forecast of 5.0%. In 2021, China’s economy expanded 8.1%, its best growth in a decade.

For 2023, the world’s second-largest economy was seen growing at 4.5%.

“As they prepare for slowing global growth, countries should address domestic policy distortions that are an impediment to longer term development,” World Bank East Asia and Pacific Vice President Manuela Ferro in a statement.

Another risk to the region’s outlook was aggressive interest rate hikes that central banks across the world are undertaking to combat soaring inflation. These have caused capital outflows and currency depreciations, the World Bank said.

The multilateral aid agency cautioned policymakers on imposing price controls by way of subsidies, warning these measures would only benefit the wealthy and draw government spending away from infrastructure, health and education.

“Controls and subsidies muddy price signals and hurt productivity,” World Bank East Asia and Pacific Economist Aaditya Mattoo, said in a statement. — Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS/ELOISA LOPEZ LOCAL SHARES are expected to move within a limited range this week as investors await the release of November consumer price index...

News

CRECENCIO I. CRUZ THE PESO may continue to strengthen against the dollar this week ahead of the release of November inflation data that could...

News

JULIAN ALVAREZ OF ARGENTINA — REUTERS AL RAYYAN, Qatar — Lionel Messi scored his first goal in a World Cup knockout round in his...

News

BETTINA Binaohan, Charmine Torres and Lee Sario backstopped Tchuido for the Lady Archers, who gained a separation at 61-52 midway through the fourth. —...

News

MARIE Antoinette San Diego — FIDE MARIE Antoinette San Diego has been dreaming of becoming national champion since childhood. The search for the 23-year-old...

News

LONDON — Britain’s Tyson Fury roared out a challenge to rival heavyweight world champion Oleksandr Usyk of Ukraine after retaining his WBC title with...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.