The document discusses economic growth and outlook in East Asia and the Pacific region. It finds that loose monetary policies contributed to rising debt levels in some countries. While growth was strong in 2013, price pressures emerged in some countries and risks remain for 2014-2015, including high debt levels and potential spillovers from other regions. The document recommends policies to strengthen fiscal balances and control inflation.

1. 1
Ekaterine Vashakmadze
World Bank
June 2013
Global
Economic
Prospects
East Asia & Pacific
Regional Outlook
http://www.worldbank.org/globaloutlook

2. Growth
Source: World Bank; DataStream.
-7
-2
3
8
13
18
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1
ASEAN 4 China Developing excl. EAP World excl. EAP
GDP, % change, quarter-over-quarter, saar

3. Loose policies
Source: World Bank; IMF, IFS.
-10
0
10
20
30
40
50
07M03 08M03 09M03 10M03 11M03 12M03 13M3
China Indonesia Malaysia
Philippines Thailand Vietnam
Real credit growth, % change, year-over-year

4. Growth outlook in 2013
Source: World Bank; DataStream.
-45
-35
-25
-15
-5
5
15
25
35
45
55
08Q1 09Q1 10Q1 11Q1 12Q1 13Q1
Malaysia Thailand Indonesia China Philippines
GDP growth, q/q , saar

5. Growth outlook in 2014 and 2015 and risks
Loose policies contributed to rising
debt levels
Price pressures in selected
countries of the region
Source: World Bank; IMF; BIS. Source: World Bank; DataStream.
0 50 100 150 200
Malaysia
China
Thailand
Indonesia
General Government
Non-Financial corporations
HH
Other
Share of GDP
0
2
4
6
8
10
12
14
11M0511M0811M1112M0212M0512M0812M1113M0213M05
East Asia (excludes China)
China
Indonesia
CPI, % change, 3m/3m, saar

6. Policy recommendations
Source: World Bank; DataStream.
-50
-40
-30
-20
-10
0
10
20
30
40
50
12M06 12M08 12M10 12M12 13M02 2013M04
Japan China
East Asia excl. China Indonesia
Philippines
Percentage change, 3m/3m, saar

7. 7
Ekaterine Vashakmadze
World Bank
June 2013
Global
Economic
Prospects
East Asia & Pacific
Regional Outlook
http://www.worldbank.org/globaloutlook