Full Report - Subregional Office for East and North-East Asia - escap

CONTENTS (continued)
Page
Increased disasters costing lives and development ................................................. 61
Policy options ................................................................................................................. 62
Supporting growth and achieving inclusive and sustainable development ........... 62
Debt, inflation and fiscal sustainability ....................................................................... 64
Regional cooperation for addressing infrastructure deficits .................................... 65
Chapter 2. Macroeconomic performance and policy challenges at the subregional
level ........................................................................................................................................ 69
Diversity in performance across subregions ............................................................. 70
East and North-East Asia ............................................................................................. 71
Growth slows as the global economy weakens again .............................................. 71
Inflation slows but volatile food and fuel prices continue to affect households ..... 73
Monetary policy stance supportive of growth ............................................................ 74
Adequate fiscal space in most economies provides the flexibility to
consider stimulus ..................................................................................................... 75
Current account remains in surplus ............................................................................ 76
Net exports remain supportive but intraregional trade growth weakens ................ 77
Currencies of countries in the subregion appreciate slightly against the dollar .... 77
Foreign direct investment contracts amid weakening global
investment sentiment ............................................................................................... 78
Future outlook and policy challenges ......................................................................... 78
North and Central Asia .................................................................................................. 82
Growth slows across the subregion ........................................................................... 82
Inflation eases during the first half of 2012 but subsequently picks up .................. 84
Deterioration in fiscal balances ................................................................................... 85
Central banks face a policy dilemma between supporting growth and
taming inflation ......................................................................................................... 87
Moderate export growth deteriorates current account balances ............................ 87
Future outlook and policy challenges ......................................................................... 89
Pacific ................................................................................................................................ 93
Pacific island developing economies:
Growth slows ................................................................................................................. 93
Inflationary pressures subside .................................................................................... 95
Diverse budget performance ....................................................................................... 96
Current account deficits remain large ........................................................................ 98
Future outlook and policy challenges ......................................................................... 99
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