Slowdown of the East Asia growth forecast

Recently, the World Bank has cut its forecast for the economic growth of the developing countries in East Asia . It was expected to be grown by 7.8 %, but it reached 7.1% in 2013.

One of the most important factor  affect the growth forecast is that the slowdown in China’s growth and the prospects of  US stimulus measures. Slowing growth of China’s economy influence the whole economy in East Asia. Its expectation was 8.3% economic growth, however, it just reached 7.5% growth this year. The World Bank said  that the slowdown was rooted from the shifting the export-dominated economy to domestic demand.

This is a headwind for the slowdown of the domestic demand. Meanwhile, it is also a tailwind for the world economic growth. There will be some advantages and disadvantages for the slowdown of the East Asia economic growth. When they encountered with the economic challenges, they also had opportunities to develop the Asia economy.

http://www.bbc.co.uk/news/business-24426894

 

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