East Asia’s growth is faster than the rest of the world but China headwinds weigh, World Bank says

As inflation continues to impact global economies, Asia-Pacific is the only region that will see real salary growth in 2023, according to ECA International.
Published April 1, 2024
  • Despite remaining the fastest growing region, the World Bank’s latest report says East Asia and Pacific’s growth is projected to ease to 4.5% in 2024 from 5.1% last year amid headwinds in China and policy uncertainty.
  • However, excluding China, growth in the EAP region is predicted to reach 4.6% this year — higher than 4.4% in 2023.
  • “China has become profoundly important for the region, as a source of inputs, as a destination where value added produce in the region is ultimately consumed, and as well as a source of investment,” Aaditya Mattoo, East Asia and Pacific chief economist at the World Bank says.

Growth in developing East Asia and Pacific is outpacing the rest of the world, but the region will likely see slower growth in 2024 amid headwinds in China and broader policy uncertainty, according to the World Bank. 

“It is a region that is still outperforming the rest of the world, but it is underachieving relative to its own potential,” Aaditya Mattoo, East Asia and Pacific chief economist at the World Bank, told CNBC’s “Street Signs Asia” on Monday.

Growth in the region is expected to ease to 4.5% this year, slowing from last year’s 5.1% expansion, according to the bank’s East Asia and Pacific (EAP) update for 2024, which was released Monday. The region has a population of over 2.1 billion people.

However, excluding China, growth in the region is predicted to reach 4.6% this year — higher than 4.4% in 2023.

“The outlook is subject to downside risks, which include a greater than expected slowdown in the global economy, higher for longer interest rates in major economies, increased uncertainty around the world about economic policies, and an intensification of geopolitical tensions,” the report said.


SOURCE: www.cnbc.com

RELATED: How Xi Jinping plans to overtake America

Digital twins, nuclear fusion and the small matter of fixing China’s economy

Published March 30, 2024

Last year Xi Jinping, China’s leader, paid a visit to Heilongjiang in the country’s north-east. Part of China’s industrial rustbelt, the province exemplifies the problems besetting China’s economy. Its birth rate is the lowest in the country. House prices in its biggest city are falling. The province’s gdp grew by only 2.6% in 2023. Worse, its nominal gdp, before adjusting for inflation, barely grew at all, suggesting it is in the grip of deep deflation.

Never fear: Mr Xi has a plan. On his visit, he urged his provincial audience to cultivate “new productive forces”. That phrase has since appeared scores of times in state newspapers and at official gatherings. It was highlighted in last month’s “two sessions”, annual meetings of China’s rubber-stamp parliament and its advisory body. In the preface of a new book on the subject, Wang Xianqing of Peking University likens the term to “reform and opening up”, the formula that encapsulated China’s embrace of market forces after 1978. Those words “shine” even today, he wrote, implying that “new productive forces” will have similar staying power.


SOURCE: www.economist.com


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Why do CO2 lag behind temperature?

71% of the earth is covered by ocean, water is a 1000 times denser than air and the mass of the oceans are 360 times that of the atmosphere, small temperature changes in the oceans doesn’t only modulate air temperature, but it also affect the CO2 level according to Henry’s Law.

The reason it is called “Law” is because it has been “proven”!

“.. scientific laws describe phenomena that the scientific community has found to be provably true ..”

That means, the graph proves CO2 do not control temperature, that again proves (Man Made) Global Warming, now called “Climate Change” due to lack of … Warming is – again – debunked!