The Bank expects developing economies in East Asia and the Pacific to grow five percent this year

2022-06-06 0 By

Developing economies in East Asia and the Pacific will grow by 5 percent this year, down 0.4 percentage points from October, the World Bank said Wednesday in its latest economic situation report for the region.In the report, the World Bank noted that the region is facing multiple shocks to economic growth, including the russia-Ukraine conflict affecting commodity supply, increasing financial tensions and dampening global growth;Higher government debt will make it difficult to provide economic support, and higher inflation could lead to less room for monetary policy to support the economy and tighter financial conditions.”A faster pace of interest rate hikes by the Us Federal Reserve and a continued conflict between Russia and Ukraine could exacerbate financial conditions, with greater potential risks for countries with higher debt levels and those dependent on short-term capital flows,” said Daniel Mattoo, the Bank’s chief economist for East Asia and The Pacific.The report urges economies to make fiscal policy more efficient and strengthen macro-prudential policies to mitigate the risks posed by global financial tightening.The report also calls on policymakers to promote trade policy reforms, particularly in services, and encourage the spread of technology.(source: CCTV news client) For more exciting content, please download the “Wuhan” client in each major application market.