WB: The economy projected to grow only 0.1 percent

2016-10-06 17:11:36

Ulaanbaatar /MONTSAME/ On October 4, the World Bank made public the Stable Growth Outlook for East Asia and Pacific in 2016-2018. Among the smaller economies, the growth outlook has deteriorated markedly in some commodity exporters, the report says.  

In Mongolia, the economy is projected to grow only 0.1 percent, down from 2.3 percent in 2015, on weakening mineral exports and efforts to control debt. Papua New Guinea will see its economic growth at 2.4 percent in 2016, down from 6.8 percent in 2015, because of declining prices and output for copper and liquefied natural gas. By contrast, growth will remain buoyant in Cambodia, Lao PDR and Myanmar.

“Despite the favorable prospects, the region’s growth is subject to significant risks. A sharp global financial tightening, a further slowdown in world growth or a faster-than-anticipated slowdown in China would test East Asia’s resilience,” said Sudhir Shetty, Chief Economist of the World Bank’s East Asia and Pacific Region. “These uncertainties make it critical for policymakers to reduce financial and fiscal imbalances that have built up in recent years.”

Immediate priorities include advancing reforms in its corporate sector and bringing credit growth under control in China; reducing the buildup of domestic and external financial risks in the other large economies; maintaining fiscal buffers and broadening revenue sources across the region, particularly for commodity producers; and addressing risks to fiscal sustainability in Mongolia and Timor-Leste, WB reports.