The World Bank expects lower economic growth for the east Asia and Pacific (EAP) region for 2022 due to the impact of the war in Ukraine and other global headwinds, according to a report published on April 4.
Overall, the economic growth projection for the developing EAP region in 2022 has been reduced from 5.4% in the October 2021 forecast to 5.0% today.
“Just as the economies of the EAP region were recovering from the pandemic-induced shock, the war in Ukraine is weighing on growth momentum,” Manuela Ferro, World Bank vice president for east Asia and Pacific, said in a statement.
Other factors impacting growth in the EAP region include disruption to the supply of commodities, financial tightening in the US and the pandemic’s resurgence amid China’s zero-Covid policy.
In the case of worsening global conditions and poor national policy response to weather these shocks, regional growth in 2022 could slow to 4%, the World Bank said.
China, which accounts for 86% of regional output, is expected to grow by 5% this year under the baseline scenario. Output for the rest of the region is forecast to expand by 4.8%.