World Bank East Asia and Pacific Economic Update 2012, Volume 1 : Capturing New Sources of Growth

Growth in developing East Asia and the Pacific remained strong in 2011, although it slowed from its post-crisis peaks. Strong domestic demand offset weaker external demand from the United States and Western Europe. Looking ahead, the external environment is likely to remain weak. The best prospects for the region to maintain high rates of growth, job creation, and poverty reduction are through rebalancing towards domestic demand and investing in productivity increases and further international integration. The region remains vulnerable to the continued uncertainty in Europe through trade and financial linkages. Although last December's fiscal pact and liquidity support from the European Central Bank helped stabilize financial markets, recent political events and market developments point to continued challenges. Renewed market volatility and a further slowdown in European economies cannot be ruled out. The European Union (EU), along with the US and Japan, accounts for over 40 percent of the region's direct export shipments and an estimated 60 percent if intraregional trade linked to production networks is taken into account. A serious disruption in the EU would also have knock-on effects on East Asia's exports and growth by lowering growth in other regions, particularly Eastern Europe. Moreover, European banks provide a third of trade and project finance in Asia. Policies to support the movement of labor among countries can contribute to higher productivity. Migration in developing East Asia has helped fill labor shortages in host countries and remittance flows have contributed to poverty reduction and macroeconomic stability in home countries. Yet, as in other parts of the world, existing bilateral and regional migration policies do not always allow migrants to move efficiently to where returns are highest or allow firms to obtain the workers they need, and these policies may contain incentives for undocumented migration. Improved regional migration policies could enhance the gains from regional economic integration and allow those countries facing a negative demographic drag on economic growth in the next generation to obtain much-needed labor inputs.

Bibliographic Details

Main Author:	World Bank
Format:	Publication biblioteca
Language:	en_US
Published:	Washington, DC 2012-05
Subjects:	advanced economies, advanced economy, Aggregate Demand, annual growth, assets, Balance of Payments, bank credit, bank loans, banking systems, Bonds, buffers, capital flows, capital formation, capital goods, capital market, capital outflows, Central Bank, central bank policy, Central banks, central rate, commercial bank, commercial banks, Commodities, Commodity, commodity exports, Commodity Price, commodity prices, constant dollar, consumer confidence, Consumer price index, consumer price inflation, consumption goods, Consumption growth, Copyright Clearance, Copyright Clearance Center, Core inflation, credit quality, credit risk, Credit risks, Currency, current account, Current account balance, current account surplus, current account surpluses, cyclical adjustment, debt sustainability, demand growth, demographic, deposit, deposit interest rates, deposits, developing economies, direct investments, discount rates, dollar values, domestic consumption, domestic demand, domestic economy, domestic market, drag on growth, economic crisis, economic environment, economic growth, economic integration, economic performance, economies of scale, effective exchange rate, Emerging Portfolio Funds, energy demand, equilibrium, equities, equity funds, Euro zone, exchange rates, expansionary fiscal policy, Export Earnings, Export Growth, export growth rate, Export performance, exporters, exposure, exposures, external demand, financial crisis, Financial Market, financial markets, financial sector, financial stability, fiscal deficit, fiscal discipline, Fiscal policy, fiscal position, Fixed Capital, food price, food prices, Foreign direct investment, Foreign Exchange, Foreign Exchange Reserves, foreign investment, foreign portfolio, foreign portfolio investment, Foreign Reserves, future growth, geopolitical tensions, global demand, Global Economic Prospects, global economy, global leader, global market, global markets, Gold, gold prices, Government Bond, Gross domestic product, growth in trade, growth rate, growth rates, home countries, import, import demand, import growth, imports, income, inflation, inflation rate, inflation rates, inflation target, inflationary pressures, infrastructure projects, interest rate, international financial markets, international reserves, International Trade, investment spending, job creation, Labor markets, levels of investment, liquidity, liquidity risks, liquidity support, local currencies, Local currency, Low-income countries, macroeconomic stability, market developments, Market Price, Market Price Indices, market volatility, Middle-income countries, middle-income economies, mineral prices, monetary authorities, monetary policies, monetary policy, mortgages, natural disasters, natural resources, net capital, Nominal Exchange Rates, oil exporters, oil price, oil prices, output, output gap, Output gaps, Portfolio, Portfolio flows, Poverty Reduction, price increase, price index, Price Indices, private consumption, private sector development, property market, property markets, public debt, Purchasing power, Purchasing power parity, quotas, Rapid credit expansion, real consumption, real effective exchange rate, real estate, real export, real export growth, real growth rates, real investment, real wage growth, regional growth, regional trade, remittance, residential real estate, risk exposure, risk management, risk transfers, share sales, slow growth, slowdown, slowdowns, small economies, standard deviation, Stock Market, stock markets, stock price, supply disruption, supply disruptions, target ranges, tax, total exports, Total reserves, Trade balance, trade performance, Trade Statistics, uncertainty, unemployment rate, weights, world demand, World Development Indicators, world economy, world markets,
Online Access:	http://hdl.handle.net/10986/14687
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