East Asia continues to be engine of global growth: World Bank

East Asia Pacific is expected to show growth of 7.8 per cent in 2013 and 7.6 per cent in 2014, to continue its role as an engine of global growth, according to World Bank.

The region chalked up growth of 7.5 per cent in 2012.

In its latest analysis of the regional economy released on Monday in Singapore, World Bank said that fiscal and monetary policies to boost consumption and investment helped sustain growth in 2012 across the region, with middle-income countries performing particularly well. Developing economies excluding China grew 6.2 percent in 2012, up from 4.5 percent in 2011.

"The East Asia and Pacific region contributed around 40 percent of global growth in 2012, and the global economy continues to rely on the region's growth, with investor confidence surging and financial markets remaining solid" said World Bank East Asia and Pacific Vice President Axel van Trotsenburg. "Now is the time for countries to focus on helping the remaining poor, with more and better quality investments to accelerate inclusive growth."

In China, growth slowed to 7.8 percent in 2012 due to rebalancing efforts, while real disposable income of urban households rose by more than 9 percent, supporting household consumption, which contributed 4.4 percentage points to GDP growth. China is projected to grow 8.3 percent in 2013 and 8.0 percent in 2014.

Risks emanating from the Eurozone and the US have declined since the middle of last year. The World Bank's baseline projections for global growth are for a modest expansion of 2.4 percent in 2013 and a gradual strengthening to 3 percent in 2014. While still fragile, there are signs of a turnaround in real activity in high income economies, thus external demand for the East Asia and Pacific region's exports will stabilise this year. The most recent numbers on industrial production and producer's expectations confirm continued solid growth.

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