East Asia Sees Moderate Growth This Year

After last year’s strong economic recovery, emerging East Asia will see moderate growth this year as authorities continue to battle inflation amid anaemic recovery and deleverage in advanced economies, says the July issue of the Asia Economic Monitor (AEM), Asian Development Bank (ADB).

 

ADB forecasts aggregate GDP to rise a still robust 7.9 percent in 2011 and 7.7 percent in 2012. The growth in 2010 was 9.3 percent.

 

Growth in Vietnam is expected to slow as authorities tighten monetary policy and cut government expenditure to bring inflation under control. Vietnam’s economy expanded 5.7 percent in the second quarter of 2011, above the 5.4 percent first quarter growth, supported by increased industrial and construction output. For full year 2011, economic growth is forecast at 6.1 percent, with the economy in 2012 expected to expand 6.7 percent.

 

The Asia Economic Monitor (AEM) is a semi-annual review of emerging East Asia’s growth and policy issues. It covers the 10 members of the Association of Southeast Asian Nations, People’s Republic of China, Hong Kong, Republic of Korea, and Taiwan.