Economic trends across the Asia region have continued to
diverge. Growth has picked up in North Asia, especially in
China and Japan, but has weakened elsewhere, most
notably in India and Indonesia. Regional growth is expected
to rise in 2014 on improving external demand.
In China, improving growth momentum has given rise to a
slightly higher full-year growth outlook of 7.7% in 2013, and
7.6% in 2014 as projected previously. However, medium
term concerns persist on signs that rebalancing has been
delayed and that financial fragilities have continued to grow.
Risks to the regional outlook stem from prospects of
renewed capital outflows from QE tapering, and uncertainty
about the sustainability of China’s growth momentum.