JAKARTA – The World Bank has recommended three key policies to anticipate slower economic growth, projected to decline to around 4% in the East Asia and Pacific (EAP) region.

The recommendations focus on:

1. Technology adoption

2. Enhancing competitiveness in the services sector

3. Strengthening international cooperation

Aaditya Mattoo, Chief Economist for the EAP region at the World Bank, stated that the World Bank encourages the implementation of new technologies to boost productivity, creating more job opportunities, as seen in Malaysia and Thailand.

Furthermore, in a press release on Tuesday (29 April), Mattoo highlighted that the EAP region needs to improve its competitiveness in the services sector to unlock new economic opportunities, following Vietnam’s model. Lastly, he stressed the importance of strengthening international cooperation to enhance resilience.

“Combining new technologies with bold reforms and innovative collaboration can help countries in the region navigate current challenges and long-term hurdles. This is the formula for higher productivity and better employment opportunities,” Mattoo said.

Meanwhile, Manuela V. Ferro, Vice President of the World Bank for the EAP region, forecasted that economic growth in EAP countries is likely to slow down compared to initial projections earlier this year, which estimated 5% growth.

More specifically, the growth outlook for various EAP nations is as follows:

• China – 4%

• Cambodia – 4%

• Indonesia – 4.7%

• Malaysia – 3.9%

• Mongolia – 6.3%

• Lao People's Democratic Republic – 3.5%

• Philippines – 5.3%

• Thailand – 1.6%

• Vietnam – 5.8%

Additionally, economic growth in the Pacific Island countries is projected at 2.5%. (LK/LM)