PH, 3 other SEA economies to boost Asia’s trade growth

Sun Star Bacolod - - Business -

THE Philip­pines and three other South­east Asian coun­tries, and newly in­dus­tri­al­ized economies, are ex­pected to pro­vide a boost to de­vel­op­ing Asia’s trade growth this year, a new re­port from the Asian Devel­op­ment Bank (ADB) said.

Im­ports to these economies will be buoyed by ro­bust do­mes­tic de­mand, while ex­ports will ben­e­fit from grow­ing in­tra-re­gional de­mand, the Asian Eco­nomic In­te­gra­tion Re­port 2018 (AEIR) noted.

The ADB re­port said the Peo­ple’s Re­pub­lic of China (PRC) will re­main the key driver of de­vel­op­ing Asia’s trade growth, while economies of In­done­sia, Malaysia, Thai­land as well as Hong Kong, the Re­pub­lic of Korea, Sin­ga­pore, and Taipei can also step up growth.

This, as de­vel­op­ing Asia’s trade is ex­pected to grow al­beit at a slower pace.

The re­port iden­ti­fied the es­ca­lat­ing trade fric­tion be­tween the United States and China as the key risk to the trade vol­ume pro­jec­tion.

World trade growth is also ex­pected to slow mod­er­ately from 4.7 per­cent in 2017 to 4.5 per­cent in 2018 as growth eases in some ad­vanced economies—likely to af­fect ex­ports of emerg­ing and de­vel­op­ing economies as well.

Mean­while, the re­port un­der­scored the im­por­tance of re­gional in­te­gra­tion in Asia as a devel­op­ment strat­egy.

Over time, trade and in­vest­ment have strength­ened as a ma­jor con­trib­u­tor to re­gional in­te­gra­tion, it said.

The re­port cited an em­pir­i­cal ex­er­cise in­di­cat­ing that re­gional value chains, move­ment of peo­ple, and in­sti­tu­tional and so­cial in­te­gra­tion have been sig­nif­i­cant driv­ers of eco­nomic growth, while over­all re­gional in­te­gra­tion helped re­duce poverty./ Philex­port News and Fea­tures

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