east asia and pacific economic update 2011. navigating turbulence, sustaining growth

Navigating Turbulence, Sustaining Growth WORLD BANK EAST ASIA AND PACIFIC ECONOMIC UPDATE 2011, VOLUME 2 [...]... Thailand Q2-11 China (RHS) 3/07 China 9/07 3/08 Indonesia 9/08 Malaysia 3/09 9/09 Philippines 3/10 9/10 Thailand 3/11 Vietnam Source: BIS, Locational Banking Statistics 7 See Robust Recovery, Rising Risks, East Asia and Pacific Economic Update, November 2010, World Bank, Washington DC world bank East asia and pacific economic update 2011, vol 2 15 II Policies Refocus on Sustaining Growth The global economic. .. contribute to growth (see Chapter III for growth projections) 2 Preliminary monthly data indicate that in October 2011 China’s PMI has increased to just above 50 3 Securing the Present, Shaping the Future, EAP Economic Update, March 2011, World Bank, Washington DC world bank East asia and pacific economic update 2011, vol 2 I Weak External Demand Slows Growth Box 1 Natural disasters are affecting growth and. .. their holdings of emerging East Asian equities and bonds, equal to about three percent of their holdings in the region (Figure 27) Fund flows from mutual and ETFs represent, on average, about one-third of equity flows and one-fifth of bond flows reported on balance of payments basis world bank East asia and pacific economic update 2011, vol 2 I Weak External Demand Slows Growth Figure 26 After buoyant... Commerce, and Cambodia National Institute of Statistics Note: Only garment workers’ wages for Cambodia 4 See Chapter II for fiscal policy analysis 5 See Securing the Present, Shaping the Future, EAP Economic Update, April 2011, World Bank, Washington DC world bank East asia and pacific economic update 2011, vol 2 I Weak External Demand Slows Growth sector, which has been experiencing strong growth after... telecommunications equipment from Thailand fell by 30 percent in September, and exports of office machines and computers in Malaysia and Indonesia contracted by over 20 percent during some months in 2011 compared to a year earlier navigating turbulence, sustaining growth 9 10 I Weak External Demand Slows Growth Figure 16 External demand is barely growing Figure 17 .and it is dragging down exports of electronics... pre-2008 crisis growth rates (Figure 5) Domestic demand in ASEAN has been slowing gradually after reaching a peak of 12 percent in first quarter of 2010, easing to just under five percent in the second quarter of 2011 1 Domestic demand was calculated as GDP less net trade and is deflated by the GDP deflator world bank East asia and pacific economic update 2011, vol 2 I Weak External Demand Slows Growth Figure... External Demand Slows Growth Developing East Asia continued to grow strongly, but economic growth slowed in 2011 due to lower demand for its exports from the developed economies, and fiscal retrenchment and monetary tightening in the East Asian Economies Industrial production, notably in the electronics sector of the middle-income countries, has been affected more severely than other sectors, and manufacturing... rates due to added checks in procurement and financial management to improve budget transparency and effectiveness world bank East asia and pacific economic update 2011, vol 2 25 III New Risks Add to Old Challenges Developed economies are settling into a low growth scenario, and the possibility of a disorderly adjustment in the Eurozone cannot be ruled out In East Asia, the region’s middle-income countries... percent during 2000-2007 (Table 1) East Asia excluding China is expected to grow by 4.7 percent and 5.3 percent in these two years respectively Slower growth reflects weaker demand from advanced economies, which will be only partially offset by higher domestic demand Resource-rich countries are expected to grow faster than average world bank East asia and pacific economic update 2011, vol 2 III New Risks... Remittances into developing East Asia have remained resilient at mid-year, helping recipient countries maintain current account surpluses However, economic weakness in the U.S and in the Eurozone, which are 6 IMF, 2011, “China: Spillover Report for the 2011 Article IV Consultation and Selected Issues”, Washington DC navigating turbulence, sustaining growth 11 12 I Weak External Demand Slows Growth Figure 23 China’s . Navigating Turbulence, Sustaining Growth WORLD BANK EAST ASIA AND PACIFIC ECONOMIC UPDATE 2011, VOLUME 2