Description
East asia has recovered from the economic and financial crisis. Largely thanks to China, the region’s output, exports and employment have mostly returned to the levels before the crisis. Leading the global economy, real GDP growth in developing East Asia is poised to rise to 8.7 percent in 2010 after slowing from 8.5 percent in 2008 to 7.0 percent in 2009.
With the normalization of activity and firming of prices, the monetary authorities across the region have begun removing exceptional policy support. Measures have included allowing additional liquidity schemes to lapse, increasing required reserves and, in Vietnam and Malaysia, raising policy interest rates. But it may be premature at this stage to withdraw fiscal stimulus in many countries, as private investment is yet to become the engine of growth and the poor are still suffering. Nonetheless, fiscal space is limited and the stimulus alone cannot sustain domestic demand for an extended period of time. Transitioning to private sector-based growth in the short term is central.
This is achievable; east asia has emerged stronger from the global crisis and rapid growth will be possible in the coming years even in a weakened global economy.
Information
- Author(s)
- The World Bank
- Publisher
- The World Bank
- Date / journal vol no.
- 2010
- Pages
- 96
