Illustrative Image (Source: imf.org)Hanoi (VNA) – Growth in Asia-Pacific economies is expected to decelerate slightly to about 5.3 percent during 2016–17, according to the latest Regional Economic Outlook for Asia and Pacific, published on May 3, 2016.
According to the report, China’s growth is forecast to reach 6.5 percent in 2016 and 6.2 percent in 2017, which will be less than the country’s growth pace of 6.9 percent in 2015 – the poorest growth in the last 25 years.
Japan’s growth is expected to continue at 0.5 percent in 2016, before dropping to -0.1 percent in 2017 as the effect of the widely anticipated consumption tax increase takes hold, as well as an aging population and high public debt.
India remains the fastest-growing large economy in the world with gross domestic product (GDP) expected to increase by 7.5 percent this year and next, due to the low price in petroleum and a rise in the government’s investment and in domestic consumption which make up for the country’s swooning export activity.
Meanwhile, the Republic of Korea is forecast to climb by 2.7 percent in 2016 and 2.9 percent in 2017, thank to a surge in domestic demand. Australia ’s economy is expected to remain stable at 2.5 percent this year.
The IMF said economic stimulation measures by Asia-Pacific governments, have reduced the price of goods, lowered the unemployment rate and helped to boost growth in the region.
The organisation also said that in order to cope with global risks, regional lawmakers should promote restructuring programmes to increase productivity while generating financial sources.-VNA
