East Asia faces growth slowdown, World Bank warns – CNBC
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The Philippines and Vietnam boast the strongest outlook, with GDP set to climb over 6 percent in 2016, the report stated.
Indonesia, Southeast Asia’s largest economy, could expand 5.1 percent this year and 5.3 percent in 2017, depending on the success of President Joko Widodo’s recent reforms and the implementation of a public investment program.
But volatile commodity prices and weak external demand will continue to hurt smaller nations in East Asia, including Cambodia, Lao, Mongolia and Papua New Guinea.
“Across the region more generally, there is a growing need for prudent fiscal policy to guard against future external shocks. This is especially important in those economies where growth has been sustained through increased public or private sector borrowing, or where external demand has been supported by the commodities boom,” the report said.
Taking a longer-term focus, the World Bank stresses governments to increase transparency and accountability as well as helping citizens adapt their skill sets to meet the demands of the new digital economy.
East Asia faces growth slowdown, World Bank warns – CNBC}