United Nation Economic and Social Commission for Asia and the Pacific (UNESCAP) 2015 survey titled Making Growth More Inclusive for Sustainable Development was released on 14 May 2015.
The survey analyzes the economic growth performance of the region, along with its outlook and challenges countries face in sharing the benefits of growth with all people.
Highlights of the Survey
• Economic growth in Asia and the Pacific continues to fare well in the global context, but is expected to increase only slightly to 5.9% in 2015 from 5.8% in 2014.
• Unlike other sub-regions, North and Central Asia is facing low economic growth but high inflation.
• Weighed down by lower global oil prices and geopolitical tensions, the economy of the Russian Federation barely grew in 2014; it is expected to contract over 2015 and 2016.
• As the country accounts for 80% of the output in North and Central Asia, sub-regional growth performance and prospects are also bleak. Inflation has also increased in several economies as declining commodity prices led to subdued foreign exchange earnings and the weakening of currencies.
• Economic growth in South and South-West Asia edged up in 2014, mainly led by stronger macroeconomic performance in India, but it remained far below its pre-crisis pace. The consumption-led growth was fuelled by favourable farm incomes, workers’ remittances and monetary easing.
India’s Economic Growth
• The survey has predicted Indian Economy growth at 8.1 per cent in the current financial year 2015 and 8.2 per cent in 2016, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures.
• Investment is also expected to rebound, although unevenly, given the still low capacity-utilisation rate at about 70 per cent.
• Volatile capital flows that may follow monetary policy normalisation in the US remain the downside risk.
Pakistan’s Economic Growth
• Economic growth in Pakistan picked up to 4.1% in 2014 from an average of 3.7% in the previous three years and growth was expected to rise to 5.1% in 2015.
• The report said that inflation was on the decline and budget deficit was being contained and foreign exchange reserves have significantly improved and market confidence in Pakistan’s outlook seems to have improved.
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When: 14 May 2015