In its latest forecast report on the Asia Pacific economies published on Thursday, the World Bank said that the economic growth in the region is forecast to slip to 5.8% in 2019 from 6.3% in 2018.
“The weakening global demand and heightened uncertainty that led to a decline in exports and investment growth, and points out that increasing trade tensions pose a long-term threat to regional growth.
While companies are searching for ways to avoid tariffs, it will be difficult for countries in developing East Asia and the Pacific to replace China’s role in global value chains in the short term due to inadequate infrastructure and small scales of production.
China’s growth is projected to slow to 6.1% this year, down from 6.6% in 2018.
The World Bank said that growth for East Asia and the Pacific is expected to slow to 5.7% in 2020 and 5.6% in 2021.”