Growth in most countries in the East Asia and Pacific (EAP) region recovered in the first half of 2022, but China lost momentum. Domestic demand has recovered in much of the region after suffering from the COVID-19 delta wave. In China, public health measures to contain outbreaks of the highly contagious Omicron subspecies curbed consumption. Most of the region is projected to grow faster than the rest of the world, with lower inflation in 2022. Beyond the end of 2022, three factors could weigh on growth: a slowing global economy, rising debt, and policy distortions. Current measures to curb inflation and debt are adding existing distortions to food, fuel and financial markets in ways that could undermine growth. In either case, more efficient measures address current issues without compromising long-term goals.
“World Bank. 2022. World Bank East Asia and Pacific Economic Update, October 2022: Reforming for RecoveryWashington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/38053 License: CC BY 3.0 IGO.”