Quoting the International Monetary Fund, the newspaper reports suggest that the countries situated in Asia-Pacific region have been continuing to outperform the rest of the world for the last few years. However, a slower growth in China and Japan poses new risks to the region. In its biannual Regional Economic Outlook for Asia and the Pacific, the report says that the region’s gross domestic product growth will hold steady at 5.6 percent in 2015, before moderating to 5.5 percent in 2016. The fund attributes strong growth in the region to robust domestic consumption spurred by healthy labour market, low interest rates and fall in oil prices. The IMF, however, warns that rising debts, a stronger dollar and weaker-than-expected performances from China and Japan pose new risks to the broader Asia-Pacific region. The report expects India’s growth rate to rise by 7.5 percent, making it one of the fastest growing economies in the world. The IMF also notes that India’s near-term growth outlook has improved, but its medium-term prospects remain constrained by longstanding structural weakness. Apparently due to political stability, improved business confidence, reduced external vulnerabilities and lower commodity prices will push India’s GDP to 7.2 percent in 2014-15, and 7.5 percent in 2015-16. However, with poor living conditions and even lack of utility of toilet to a vast majority mars every effort of the government to put the country on the road of development.
According to the IMF, China’s economy is slowing to a more sustainable pace at 6.8 percent gross domestic product growth in 2015, and 6.3 percent in 2016, while growth in Japan is picking up to one percent in this year, and 1.2 percent next year. The Asian countries will also benefit from lower commodity prices in Australia, Indonesia, Malaysia and New Zealand. Asia, including China and Japan, accounts for nearly 40 percent of the global output and contributes nearly two-thirds of global growth. Asia’s leading role in world growth is set to continue in coming years despite slow potential growth in some countries, reflecting weaker productivity gains and effects of aging infrastructure. However, despite moderate and uneven global recovery, the demand for the products manufactured in Asia will continue to rise.
The debt servicing is crucial problem for the developing countries and persistent rise in dollar price also adversely affected some Asian economies. The IMF says that debt levels, including foreign currency-denominated debt, have increased rapidly in recent years, and Asia is now more vulnerable to financial market shocks. Pakistan is emerging economy and its performance is associated with world economic trends. However, after its close cooperation with China, it is hoped that the economy of the country will grow in coming years. Pakistan is part of the Asia Pacific and it cannot be immune to changes in the region.