Kuala Lumpur – A World Bank report said on Thursday that growth in developing Asian Pacific economies was expected to slow in 2019 due to weakening demand and heightened uncertainty amid ongoing trade tensions.
The World Bank said in the October edition of Weathering Growing Risks that growth for developing economies in the region is expected to slow from 6.3 per cent in 2018 to 5.8 per cent in 2019.
It added that the economies is expected to slow from 5.7 and 5.6 per cent in 2020 and 2021 respectively, reflecting a broad-based decline in export growth and manufacturing activities.
Andrew Mason, World Bank Lead Economist for East Asia and the Pacific said the region’s growth prospects face an intensified set of risks. Mason said the risks included trade tensions, faster-than-expected slowdowns in major economies such as the Eurozone and the U.S., as well as uncertainties around the Brexit.
The World Bank also warned that the short term gain of some countries in the region would not be unsustainable in the long run.