With gross domestic product (GDP) growth estimated at 6.1% in 2014, East Asia remains the world’s fastest-growing region, according to the United Nations World Economic Situation and Prospects 2015 report.
This compared with a global economy which is expected to grow 3.1% in 2015 and 3.3% in 2016, with an estimated growth of 2.6% for 2014, according to the report.
After a second year of estimated growth of 6.1% in 2015, East Asia is forecast to grow at 6.0% in 2016.
Household consumption is expected to remain strong in most [East Asian] economies, supported by mild inflation, robust labour markets and generally low real interest rates, even as monetary conditions will likely become less accommodative, in line with the normalization of monetary policy in the United States.
Fiscal policy is expected to remain mildly supportive of growth and most countries have sufficient space to provide additional stimulus, if necessary.
The report explained that the key downside risks for East Asia are related to the upcoming tightening of global liquidity conditions, which could result in weaker growth of domestic consumption and investment, and to a sharper-than-expected slowdown of China’s economy.