The World Bank raised its economic growth forecasts for developing East Asia and Pacific for this year and 2018, but added the generally positive outlook was clouded by risks such as rising trade protectionism and geopolitical tensions.
The Washington-based lender now expects the developing East Asia and Pacific (EAP) region, which includes China, to grow 6.4percent in 2017 and 6.2 percent in 2018.
Its previous forecast in April was for 6.2 percent growth in 2017 and 6.1 percent growth in 2018.
“The economic outlook for the region remains positive and will benefit from an improved external environment as well as strong domestic demand,” the World Bank said in its latest East Asia and Pacific Economic Update report on Wednesday.
The outlook, however, faces risks from rising trade protectionism and economic nationalism, which could dampen global trade, as well as the possible escalation of geopolitical tensions in the region, the bank said.
Increasingly hostile statements by U.S. President Donald Trump and North Korean leader Kim Jong Un in recent weeks have raised fears of a miscalculation that could lead to war, particularly since Pyongyang conducted its sixth and most powerful nuclear test on Sept. 3.
Reference: Reuters
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