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UN: Asia-Pacific region growth is driven by consumption and investments
15.05.2015 08:02 "Agro Perspectiva" (Kyiv) —
As of now, the developing economies in the Asia-Pacific region continue to fare well in comparison to the rest of the world, but structural weaknesses are still holding back their growth, UN Radio says referring to the ESCAP (UN Economic and Social Commission for Asia and the Pacific) new report issued on Thurs.
As to the report, more inclusive economic growth is key to ensuring sustainable prosperity for all.
The report admits «inclusive growth» happens when benefits don’t persistently and disproportionately accrue to one or more groups in society.
ESCAP’s report also says growth in the region’s developing nations will increase only slightly, to 5.9 per cent in 2015 compared to 5.8 per cent last year.
«What the report says is that this growth first is basically driven by consumption and investment, that means domestic factors rather than foreign demand, and that although it remains pretty high growth rates compared with the rest of the world, the reports says that this is below growth potential and also below growth rates before the 2008/2009 crisis,» Alfredo Calcagno, UN Conference on Trade and Development (UNCTAD) expert, admits.
Besides, the report also says that the growth potential of Asia-Pacific developing economies is being held back by infrastructure shortages and the excessive commodity dependence of some countries.
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