GROWTH in developing East Asia and the Pacific (EAP) is projected to soften to 6.0 percent in 2019 and 2020, down from 6.3 percent in 2018, largely reflecting global headwinds and a continued gradual policy-guided slowdown in China, the World Bank said on Wednesday, April 24. Still, the region’s economies weathered the financial markets volatility of 2018 relatively well largely due to effective policy frameworks and strong fundamentals, including diversified economies, flexible exchange rates and solid policy buffers, it said.

While trade policy uncertainty has abated somewhat, global trade growth is likely to moderate further, according to Managing Headwinds, the April 2019 edition of the World Bank East Asia and Pacific Economic Update.

Domestic demand has remained strong in much of the region, the report adds, partly offsetting the impact of slowing exports.

In the Philippines, a delay in approving the 2019 national government budget is expected to weigh on gross domestic product growth in 2019, but growth is anticipated to pick up in 2020. (PR)