RT.com
04 Oct 2023, 19:45 GMT+10
Washington's protectionist trade policies reportedly threaten the region's economic development
East Asia's developing economies are facing one of the lowest growth rates in five decades as a result of negative factors such as US protectionism and rising levels of debt, the Financial Times reported on Tuesday, citing data by the World Bank.
The institution cut its 2024 GDP growth forecast for East Asia and the Pacific on Sunday from the previously expected 4.8% to 4.5%.
"The projections show that the region, one of the world's main growth engines, is set for its slowest pace of growth since the late 1960s, excluding extraordinary events such as the coronavirus pandemic, the Asian financial crisis and the global oil shock in the 1970s," FT wrote.
According to the World Bank, rising geopolitical tensions and the possibility of natural disasters, including extreme weather events, pose additional downside risks to the region's economic outlook. Softer global demand, as well as rising household, corporate, and government debt have also been affecting growth prospects.
The report indicated that the introduction of new US industrial and trade policies under the Inflation Reduction Act and the Chips and Science Act in 2022 hit southeast Asian countries. Designed to boost US manufacturing and cut American dependence on China, these policies reportedly led to the region's export decline to the US.
READ MORE: Biden restricts US investments in Chinese tech
According to the World Bank, electronics and machinery exports from China and southeast Asian countries including Indonesia, Vietnam, the Philippines, Malaysia, and Thailand declined since the imposition of the new trade policies. The report noted that US trade with countries exempt from the restrictions, such as Canada and Mexico, have not declined.
"This whole region which had perversely benefited from US-China trade tensions in terms of [trade] diversion now is suffering trade diversion away from it," Aaditya Mattoo, World Bank chief economist for East Asia and the Pacific, said.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Japan Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Japan Herald.
More InformationWASHINGTON, D.C.: The Trump administration is seeking a delay in the legal battle between U.S. Steel and Nippon Steel over their blocked...
SEATTLE/WASHINGTON D.C.: U.S. Transportation Secretary Sean Duffy said last week that the Federal Aviation Administration (FAA) is...
New Delhi [India], March 21 (ANI): In a historic resolution passed during its First General Assembly, the Indian Himalayan Council...
Jakarta [Indonesia], March 21 (ANI/WAM): The Mount Lewotobi Laki Laki volcano in south-central Indonesia erupted three times on Friday,...
Washington, DC [US] March 21 (ANI): John Moolenaar of the House Select Committee on China wrote to the presidents of Purdue University,...
By Mridul Bhatt New Delhi [India], March 21 (ANI): The First General Assembly of the Indian Himalayan Council of Nalanda Buddhist...
Elon Musk's Teslas' are in the running to take over the transport of Israel's government officials. Musk's company, Tesla Inc., has...
WASHINGTON, D.C.: The Trump administration is seeking a delay in the legal battle between U.S. Steel and Nippon Steel over their blocked...
NEW YORK, New York - U.S. stocks were on the defensive Thursday as investors and traders weighed the Fed's policy decision of a day...
WASHINGTON, D.C.: The expansion of U.S. natural gas infrastructure in 2024 significantly boosted the country's ability to transport...
BERLIN, Germany: Audi has announced plans to cut up to 7,500 jobs in Germany by 2029 as part of a broader restructuring aimed at reducing...
SEATTLE/WASHINGTON D.C.: U.S. Transportation Secretary Sean Duffy said last week that the Federal Aviation Administration (FAA) is...