East Asia: Economy

East Asia’s growth slowdown reflects continued moderation in the People's Republic of China (PRC). Subregional growth dipped by 0.1 percentage points to 6.0% in 2016. The PRC slowed to 6.7% despite fiscal and monetary support as private investment weakened. Growth also dipped in Mongolia as construction faltered and in Hong Kong, China as tourist arrivals dropped. The rate is projected to moderate further in the PRC to 6.5% this year and 6.2% next as structural reform continues and the authorities emphasize financial stability. This will push the subregional average down to 5.8% in 2017 and 5.6% in 2018. Yet large government outlays will lift growth in Taipei,China and Hong Kong, China this year and the next. Mining investment will buoy growth in Mongolia, and the return of political stability in the Republic of Korea should pay a mild growth dividend in 2018. Inflation accelerated in East Asia last year but slowed in Mongolia on lower meat prices. It is expected to pick up modestly from 1.9% in 2016 to 2.3% in 2017 and 2.6% in 2018. Read more from Asian Development Outlook 2017.


Economic forecasts for East Asian countries

Country 2017f 2018f
China, People's Republic of 6.5 6.2
Hong Kong, China 2.0 2.1
Korea, Republic of 2.5 2.7
Mongolia 2.5 2.0
Taipei,China 1.8 2.2
Average 5.8 5.6
Country 2017f 2018f
China, People's Republic of 2.4 2.8
Hong Kong, China 2.0 2.1
Korea, Republic of 1.7 1.8
Mongolia 3.5 3.9
Taipei,China 1.3 1.2
Average 2.3 2.6
Country 2017f 2018f
China, People's Republic of 1.8 1.7
Hong Kong, China 3.1 3.1
Korea, Republic of 5.8 5.3
Mongolia –2.1 –6.3
Taipei,China 6.8 6.5
Average 2.5 2.3

f = forecast number.

Source: Asian Development Outlook 2017