A gloomy outlook is enveloping the world’s economies. There are concerns too that countries are failing to sufficiently focus on long-term policy responses to reverse the decline in global growth. Some argue that the global growth slowdown may be permanent, highlighting the danger of a period of chronically low growth, or what economists term “secular stagnation.”
Yes, developing Asia’s growth is noticeably slower. In the decade up to 2010, annual average growth reached 7.6 per cent. Most recent forecasts project regional growth to edge down to 5.7 per cent over the next two years.
However, while the growth has slowed, it is still robust. At 6.5 per cent annually over the last five years, it remained the fastest growing region in the world. By comparison, developing countries outside Asia grew 3.4 per cent and advanced countries only 1.6 per cent annually during the same period.