Regional Economic Outlook: Asia and Pacific, April 2013 - Shifting Risks, New Foundations for Growth
Asia and Pacific, April 29, 2013
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- Regional Economic Outlook: Asia and Pacific, April 2013 - Shifting Risks, New Foundations for Growth
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Bibliographic details
- Published: April 29, 2013
- Series: Asia and Pacific
Executive Summary
- Growth in the Asia-Pacific region shows signs of improving as extreme risks emanating from advanced economies have receded and domestic demand remains resilient.
- Supporting factors: relatively easy financial conditions and robust labor markets.
- Projection: a small and gradual pick-up in growth to over 5¾ percent is projected in the course of 2013.
- Emerging internal risks: rising financial imbalances and asset prices in some economies are becoming clearer into focus.
- Policy priorities highlighted:
- Monetary policymakers should stand ready to respond early and decisively to shifting risks.
- Macroprudential measures will have a role to play.
- Some fiscal consolidation in many Asian economies could rebuild space to respond to future shocks and preempt potential overheating pressures from capital inflows.
- A growing need to make tax and spending policies more efficient.
- To sustain high growth rates and alleviate the “middle-income trap” across Emerging Asia, policies will vary by jurisdiction but will often include strengthening infrastructure investment and reforming goods and labor markets.
I. Managing Shifting Risks
- Signs of Pickup amid Receding Tail Risks:
- Extreme tail risks from advanced economies have receded, improving growth prospects.
- Stronger Prospects Hinge on Internal Demand Dynamics:
- Continued resilience of domestic demand will be crucial for sustaining the pickup.
- More Balanced, but Shifting Risks:
- While external risks have diminished, internal risks such as financial imbalances and asset price pressures have become more prominent.
- A Transition to Rebuilding Policy Space:
- Recommendation for some fiscal consolidation to rebuild buffers.
- Laying Foundations for Sustained and Shared Prosperity:
- Emphasis on long-run reforms to support inclusive growth and prevent future crises.
II. Fiscal Policy: Dampening Cyclical Fluctuations and Supporting Inclusive Growth
- Role of Fiscal Policy:
- Fiscal policy can dampen cyclical fluctuations in Asia.
- Increasing Space to Support Sustained and Inclusive Growth:
- Some fiscal consolidation is advised to rebuild policy space.
- Improving efficiency of tax and spending policies is recommended to create room for investment in growth-promoting areas such as infrastructure.
- Specific fiscal topics included in the report contents (listed for emphasis on analysis areas):
- Cash Transfers in India
- Fiscal Impulse, 2007–12
- Procyclicality and Institutional Strength, 1980–2011
- Multipliers for Government Spending and Public Investment in Asia, Four-Quarters
- Automatic Stabilizers, 2001–11
- General Government Revenue and GDP per Capita, 2011
- Yields from Personal Income Tax; Corporate Income Tax; VAT and Sales Tax
- Public Investment and Infrastructure; Public Social Spending: Health and Education; Subsidies and Social Benefits; Food and Energy Subsidies
III. Is Middle-Income Asia at Risk of a Sustained Growth Slowdown?
- Framing questions addressed:
- What Is a Sustained Growth Slowdown?
- Are Middle-Income Economies Different?
- What Explains the Likelihood of Getting Trapped?
- Are Middle-Income Asian Economies at Risk of a Sustained Growth Slowdown?
- Can Emerging Asia Get Old before It Gets Rich?
- Policy implications to address the “middle-income trap”:
- Strengthen infrastructure investment.
- Reform goods and labor markets.
- Tailor policy agendas to jurisdiction-specific needs to sustain high growth rates and support shared prosperity.
Regional Economic Outlook: Asia and Pacific, April 2013 - Shifting Risks, New Foundations for Growth
Content in this bundle
- fig_box1_1
- dataset overview
- Dataset: fig_box1_2
- Fig Box1 3
- dataset overview
- fig_box1_6
- fig_box1_7 — Dataset overview
- fig_box1_9
- Figure 1.1. GDP Growth and Financial Market Conditions
- Figure 1.10. Asia: Current Account Balances
- Figure 1.11. Indicator Model for Asia: Projected vs. Actual Real GDP Growth
- Figure 1.12. Selected Asia: Contributions to Projected Growth
- Figure 1.13. Asia: Financial Conditions Index
- Figure 1.14. Emerging Asia: Response of Credit Growth and Long-Term Interest Rate to Non-FDI Inflows
- Figure 1.15. Emerging Asia: Response of Domestic Demand to Portfolio Equity Flows
- Fig1 16
- Fig1 17
- Figure 1.18. Asia: Real GDP Growth
- Figure 1.2. Selected Asia: Equity and Bond Funds�Quarterly Net Flows during 2010 to 2013
- dataset overview
- Figure 1.21. Corporate Debt-to-Equity Ratio
- Figure 1.22. Selected Asia: Nonfinancial Corporate Sector—Return on Assets
- Figure 1.23. Selected Asia: Tier-1 Capital Ratio
- Figure 1.24. Selected Asia: Liquidity Ratio
- Figure 1.25. Selected Asia: Return on Assets
- Figure 1.26. Selected Asia: Nonperforming Loans Ratio
- dataset overview
- Figure 1.28. Selected Asia: Contribution to Export Growth
- Figure 1.29. Selected Asia: Links to Japan and Export Growth in 2011:Q2
- Figure 1.3. Asia: Stock Markets
- Figure 1.30. China Slowdown Scenario: Impact on Real GDP After Two Years
- Figure 1.31. Japan Risk Contagion Scenario: Impact on Real GDP After Two Years
- Figure 1.32. Selected Asia: Policy Rates
- Figure 1.33. Selected Asia: Monetary Policy Stances
- Figure 1.34. Output Gap vs. Credit Gap, Latest
- Fig1 35
- Figure 1.36. Selected Asia: Cyclically Adjusted Fiscal Balance
- Fig1 37
- dataset overview
- Figure 1.4. Asia: Change in Credit to GDP, 2012
- Figure 1.5. Asia: Effective Exchange Rates
- Figure 1.6. Asia: Changes in Real GDP at Market Prices
- Fig1 7
- Fig1 8
- Figure 1.9. Asia: Contributions to 2012 Change in Headline Inflation Rate
- Figure 2.1. Correlation Between Government Spending and GDP
- Figure 2.10. Selected Tax Revenues by Category
- Figure 2.11. Public Investment and Infrastructure
- Fig2 12
- Figure 2.13. Subsidies and Social Benefits
- Figure 2.14. Food and Energy Subsidies
- Figure 2.2. Fiscal Impulse, 2007-12
- Figure 2.3. Procyclicality and Institutional Strength
- Figure 2.4. Multipliers for Government Spending and Public Investment in Asia, Four-Quarters
- Figure 2.5. Automatic Stabilizers, 2001-11
- Figure 2.6. General Government Revenue and GDP per Capita, 2011
- Figure 2.7. Yields from Personal Income Tax
- Figure 2.8. Yields from Corporate Income Tax
- Figure 2.9. Yields from VAT and Sales Tax
- Figure 3.1. Past Growth Trajectories
- Figure 3.10.Overall dependency Ratios
- Dataset overview
- Figure 3.12. Research and Development Expenditure
- Figure 3.2. GDP per Capita Convergence in the Four Asian "Tigers"
- Figure 3.3. GDP per Capita Convergence in Seven Emerging Asian Economies
- Fig3 4
- Fig3 5
- Figure 3.6. There seems to be a Middle Income Trap
- Figure 3.7. The Impact of Changes in Fundamentals on the Probability of a Sustained Slowdown
- Figure 3.8. Strengths and Weaknesses of Asia MIEs
- Figure 3.9. Strengths and Weakness of Asian MIEs Relative to other Emerging Regions
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- _areo0413exkpdf
- _areo0413extpdf
- Bản tóm lược chi tiết
- Executive Summary
- Asia and Pacific Regional Economic Outlook: Shifting Risks, New Foundations for Growth, April 2013
- Managing Shifting Risks
- C20413pdf
- C30413pdf
- References
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References
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- Press Release: Asia Leads Global Recovery, Further Reforms Will Help Address Medium-Term Challenges, Says IMF’s Asia-Pacific Economic Outlook
- Asia and Pacific: Regional Economic Outlooks Archive
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