Report: Asia Growth to Slow, but Largely Cushioned From Global Financial Crisis

Posted November 22nd, 2011 at 7:30 am (UTC-5)
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The World Bank says economic growth is still strong in East Asia, but will continue to be affected by weakening external demand.

In a bi-annual report released Tuesday, the World Bank says growth in East Asia’s developing economies will slow to 7.8 percent in 2012, down from 8.2 percent this year.

The report says the region’s prospect for growth will continue to be constrained by the debt crises in Europe and the United States, but that its large foreign reserves will largely protect it from another global financial disaster.

The bank says Asia’s primary challenge will be to balance between stimulating growth and fighting the effects of global uncertainty.

Meanwhile, World Bank economist Bert Hofman says growth in China is expected to slow moderately to a little more than eight percent next year.

The report says that China’s share of world imports has risen rapidly, making it an increasingly important source of global demand. The World Bank says China now buys as much as the European Union.

The bank also says that 38 million people are expected to move out of poverty by the end of the year in developing East Asia, which includes China, Indonesia, Malaysia, the Philippines, Thailand, Vietnam and Cambodia.