Economics

Asia growth pessimism is not warranted
Economics

Asia growth pessimism is not warranted

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A gloomy outlook is enveloping the world’s economies. There are concerns too that countries are failing to sufficiently focus on long term policy responses to reverse the decline in global growth. Some argue that the global growth slowdown may be permanent, highlighting the danger of a period of chronically low growth, or what economists term “secular stagnation.”
Structural reforms to sustain Asia's growth
Economics

Structural reforms to sustain Asia’s growth

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Economic growth in both developing and advanced economies has slowed since the global financial crisis. Developing Asia’s growth also moderated after the crisis, to a large extent driven by the slowdown in the People’s Republic of China (PRC). The region’s economy expanded on average 7.6% annually during 2001–2010, but growth slowed to an annual average of 6.5% during 2011–2015. ADB is projecting further deceleration to 5.7% in each 2016 and 2017.
Impact of a possible growth slowdown of the People’s Republic of China on emerging Asia: a general equilibrium analysis
Economics

Impact of a possible growth slowdown of the People’s Republic of China on emerging Asia: A general equilibrium analysis

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With its rapid economic growth and integration into the global economy over the last 3 decades, the People’s Republic of China (PRC) has emerged as a major economic power and an important source of growth for the world economy. Now it is the second-largest economy at market exchange rates and the largest exporter in the world. In Asia, the PRC’s role as a growth pole is even more prominent. Over the last 10 years, spurred by strong processing exports and domestic demand, the PRC’s imports from Asia in US dollar terms have increased at an average annual rate of 9%. Strong demand from the PRC also supported prices of commodities exported by Asian and other emerging economies.
Kuroda should rethink the quest for 2 percent inflation
Economics

Kuroda should rethink the quest for 2 percent inflation

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The Bank of Japan had a difficult start into 2016. The latest data shows that inflation in the last quarter of 2015 was lower than expected. Furthermore, doubts are increasing about the recovery of the economy. At the end of January, BOJ Gov. Haruhiko Kuroda surprised markets by announcing negative interest rates for certain commercial bank deposits at the BOJ. On March 1 Japan started to sell government bonds with a yield below zero. Market observers expect even bolder steps later this year.
Budgeting data gaps and fiscal policy debate
Economics, Finance sector development

Budgeting data gaps and fiscal policy debate

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Singapore has regularly reported considerable surpluses in its annual fiscal budget. Budget surpluses have been an essential part of the country’s growth strategy (Asher et al. 2015) as they are perceived to provide a signal of sound public sector financial management to foreign investors, key stakeholders in Singapore’s development planning. Budget surpluses also enable the corporate income tax rate to be kept among the lowest in the world, at 17%. Other policies—such as having a relatively large inflow of foreign workers that depresses at the lower end and almost no taxes on most forms of capital gains and domestic interest income—contribute to the high share of capital income in national income at around 55%, with labor’s share at around 40%–42%, in contrast to the pattern in OECD countries.
Learning from Firms in East Asian Production Networks
Economics, Regional cooperation and integration

Learning from firms in East Asian production networks

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Slowing growth in the Peoples Republic of China (PRC) – the world’s second largest economy – is grabbing the headlines with some suggesting a third wave of the 2008 global financial crisis. While this topic deserves attention because of its global economic implications, there is insufficient analysis of firms in global production networks (GPNs), which were at the forefront of the economic transformation in PRC and the rest of East Asia, and lessons for latecomers to GPNs.
China’s growth prospects
Economics

The PRC’s growth prospects

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The PRC’s diminished growth prospects have figured prominently in recent commentaries about global economic conditions and world stock markets (e.g. Frankel 2016). The general view, with which I concur, is that the PRC will grow in the future at a much slower rate than it has in recent decades. This growth slowdown will reduce international trade and has probably contributed already to the depression in oil prices (Blanchard 2016).
How to achieve inclusive growth? Income inequality and health in G20 Countries
Economics

How to achieve inclusive growth? Income inequality and health in G20 countries

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The G20 leader’s summit came to a close earlier this month in Istanbul, Turkey. The emphasis of Turkey’s G20 presidency this year is on “inclusive and robust global growth.” Turkey recognizes inequality as a major problem within countries as well as across national borders and stresses the need for reducing inequality in order to achieve mutual growth. In this article, I examine the relationship between income inequality and health among G20 countries. I find that as income inequality lessens, key health outcomes, such as child mortality and life expectancy, also improve substantially. This is an important finding that could provide guidance for ADB member economies in formulating their domestic policies to foster inclusive growth.
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