China-US trade war may slow growth in East Asia: Report, Latest Business News - The New Paper

China-US trade war may slow growth in East Asia: Report

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MANILA : Sino-US trade tensions could slow growth in East Asia this year and the next but strong domestic demand and growing intra-regional trade should keep the region's prospects solid, an economic think-tank said yesterday.

After projected 5.3 per cent growth last year, the region's economies are expected to expand at a slower pace of 5.1 per cent in 2019 and 5 per cent in 2020, the Asean+3 Macroeconomic Research Office (Amro) said in a report.

The region includes China, South Korea, Japan and the 10 countries in Asean.

"The region will undoubtedly be tested amid growing headwinds from slowing global trade. Uncertainties surrounding trade remain high, and the risk of further escalation in trade tensions cannot be discounted," the Asean+3 Regional Economic Outlook 2019 report said.

Growth in China is forecast to cool further this year, with its economy seen expanding 6.3 per cent, down from 6.6 per cent last year, the report said.

Growth in 2020 is expected to dip again to 6.2 per cent.

China has a 6 per cent to 6.5 per cent growth goal this year.

Washington and China are working to hammer out a deal to ease their tariff dispute.

The US is pressing for an end to practices and policies it argues have given Chinese companies unfair advantages, including limits on access for foreign companies and alleged theft of intellectual property.

"There is little room for complacency on the policy front," Amro said, as it called on the authorities to be ready to "recalibrate" monetary and fiscal policies to support growth and preserve financial stability. - REUTERS