UN survey forecasts 7.3% growth for Asia-Pacific, warns inflation

Posted on May 5, 2011 in AllEconomic News
The Asia-Pacific region was expected to grow by 7.3 percent in the year 2011, however, high commodity prices and capital inflows might pose downward risks, the United Nations Economic and Social Commission for Asia and Pacific (ESCAP) said in its survey issued here on Wednesday.

“Asia-Pacific developing countries will continue driving the global economy in 2011,” the survey said, adding that the region has emerged from the global financial crisis as an engine and stabilizer of the global economy.

ESCAP statistics showed, at the support of massive fiscal stimulus packages and resumed exports, the Asia-Pacific economy soar by 8.8 percent, pulling the region out of the recession with a V-shape recovery.

“Still, the 2011 regional growth outlook is subject to downside risks,” the survey said, given that factors such as high food and fuel prices, the sluggish recovery and demand in developed nations, the volatile capital inflows and the impact from Japan’s recent disasters are all likely to exert negative impact on regional economy.

ESCAP estimated rising good and oil prices could cause the population in poverty of the region to increase by 42 million within the year, postponing the achievement of the Millennium Development Goal for poverty.

In addition, if the high oil prices persist, the regional growth would be dragged down by as much as 1 percent.

via UN survey forecasts 7.3% growth for Asia-Pacific, warns inflation – People’s Daily Online.