East Asia and Pacific region predicted to grow 8.7 per cent this year 24 June 2010 East Asia and the Pacific region, including Australia, is forecast to grow by 8.7 per cent in 2010 and 7.7 per cent in 2011, according to a new report from the World Bank. The Global Economic Prospects 2010: Crisis, Finance, and Growth report noted that the region had benefited from close links with China, which has led the world out of the Global Financial crisis Dr Matthew Durban, Senior Trade and Investment Analyst for the Australian Trade Commission – Austrade – said China’s robust economic growth will continue to support Australian exports in the medium term, and make Australia a more attractive investment destination. “Furthermore, China’s growth is becoming more broad-based, which could benefit other tradeable goods and services, notably medium to high tech manufacturing,” Dr Durban said. He added that Australia’s merchandise exports to China are up 29 per cent (in US$, January to April 2010) compared to the same period last year. “And machinery and electrical machinery product exports have risen 72 per cent and 101 per cent respectively in the same period. “Investing in Australia is therefore a sound business proposition, tapping into Chinese and regional economic growth in trade across advanced manufacturing and technology intensive products and services, not just commodities,” Dr Durban said. In an accompanying paper to the World Bank’s Quarterly Update on China, which has also just been released, the bank’s economist, Louis Kuijs, noted that China could become the world’s largest economy at some time between 2020 and 2030. More information |