Thursday, March 30th, 2006
World Bank East Asia Update Delivered by Videoconference
Regional Sites Connect for Lively Question and Answer Session
Visit the EAP Update page on the World Bank's site.
The World Bank's latest East Asia Update was delivered on March 30, 2006 with Mr.Homi Kharas, Chief Economist for East Asia and Pacific speaking via video conference from Sydney. Connected to hear his report were the TDLC as well as sites in Canberra, Singapore and Phnom Penh, where economists, journalists and academics gathered for a lively question and answer session following the report. Manila was also connected as an observer.
Mr.Kharas began by painting a very robust picture of the region's economic performance in 2005, with broad based growth for the second year in a row, exceeding 4 % in every country except Timor-Leste. The volume of trade was strong, with East Asia now surpassing Europe as the region most open for trade in the world. A soft spot, though, was investment, a result of rising oil prices and interest rates.
"One healthy sign", said Mr.Kharas, "is that productivity gains by innovation has begun to drive growth. This creates the foundation for a longer, sustained recovery". In the past, growth in East Asia tended to be driven by investment.
"What is the impact of Asian growth on the rest of the world, both positive and negative, including South Asia and Africa?" was one of the questions raised from Tokyo. Mr.Kharas summarized it as "enormously positive", not only by creating direct demand, but more importantly, as an inspirational development success story.
The East Asia Update also focused on climate change, noting that rapid growth also meant fast growth of greenhouse gas emissions from the region. It urged countries to adopt policies to promote greater energy efficiency and conservation.
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