tailieunhanh - Asia and Pacific Regional Economic Outlook––October 2012 Update

The legislation already in place and now being considered adds up to a fundamental reshaping of the EU's financial system. Agreement on banking supervision will put the European financial system on far more secure foundations and act as a springboard for confidence. 2013 will see the implementation of many of the detailed rules of this package. The same is true for cohesion policy, where the key priorities for growth-enhancing measures and structural reforms brought out in the European semester will be put at the core of new national and regional programmes and where the focus will be on the finalisation of the country-specific mandates for the next. | FOR RELEASE In Japan 11 30 . October 12 2012 In Washington . 10 30 . October 11 2012 Asia and Pacific Regional Economic Outlook October 2012 Update Growth in the Asia-Pacific region has slowed. External headwinds played a major role as the recovery in advanced economies suffered setbacks. Weaker momentum in China and India also weighed on regional economies. For Asia as a whole GDP growth fell to its lowest rate since the 2008 global financial crisis during the first half of 2012. With inflationary pressures easing macroeconomic policy stances remained generally supportive of domestic demand and in some cases were eased further in response to the slowdown. More broadly financial conditions remain accommodative and capital inflows have resumed. Going forward growth is projected to pick up very gradually and Asia should remain the global growth leader expanding over 2 percentage points faster than the world average next year. However considerable downside risks remain in particular with regard to the euro area crisis. The priorities for policymakers are to support noninflationary growth maintain financial stability and remain responsive to weaker-than-expected outcomes. Refocusing structural and fiscal reform efforts toward sustained and more inclusive growth remains a priority. Growth in Asia has been somewhat lower than previously projected on setbacks to the global recovery Although a rebound from earlier natural disaster disruptions helped spur growth in the first quarter of 2012 that activity has now slowed markedly Figure 1 . Adverse trade spillovers from weakness in the euro area and beyond have taken their toll on Asian exports. For Asia as a whole real GDP growth averaged 5 A percent year over year in the first half of 2012 well above the global average but the lowest rate since the 2008 global financial crisis. Domestic factors also contributed to the slowdown in China and especially in India reflecting deliberate efforts to engineer a soft landing