ASIATODAY.ID, WASHINGTON — East Asia and Pacific region continues to outperform most of the rest of the world, but creating more jobs and sustaining growth will require ambitious reforms as the region navigates global uncertainties.
The World Bank’s October 2025 East Asia and Pacific Economic Update projects regional growth of 4.8 percent this year, down slightly from 5.0 percent in 2024.
Viet Nam leads at 6.6 percent growth, followed by Mongolia (5.9 percent) and the Philippines (5.3 percent). China, Cambodia, and Indonesia are each projected to grow at 4.8 percent, while Pacific Island countries are projected at 2.7 percent, and Thailand at 2.0 percent.
East Asia’s successful model for inclusive development faces new challenges. Recent job growth has been largely in low-productivity, often informal, service jobs that offer limited advancement opportunities.
Moreover, young people are struggling to find jobs and women still participate less in the labor force. While 25 million people are expected to escape poverty between 2025 and 2026, the share of the population vulnerable to falling into poverty is now greater than the middle class in most countries in the region.
“The region faces a jobs paradox—relatively strong economic growth alongside insufficient creation of quality jobs,” said Carlos Felipe Jaramillo, World Bank Vice President for East Asia and Pacific, October 7, 2025.
“Bolder reforms to remove impediments to firm entry and competition would unlock private capital and allow dynamic and productive firms to flourish and create new job opportunities. The World Bank remains a steadfast partner to the region’s commitment to inclusive growth that matches the ambition of its people.”
High-frequency indicators of economic activity signal slowing momentum. Retail sales are increasing, while consumer confidence has not recovered to pre-COVID levels. Industrial production is strong, but business confidence is low. Exports accelerated ahead of recent tariff hikes, but new export orders are weak.
Growth in 2026 is projected to slow down to 4.3 percent. Growth outcomes will be shaped by higher trade restrictions, easing—but still elevated global uncertainty—and slowing global growth, as well as domestic policy choices, especially the reliance in some countries on fiscal stimulus rather than structural reform.
The report calls for reforms and investments in human capital and digital infrastructure, greater competition in services, and policies to ensure a match between job opportunities and people’s skills. Rapid advances in AI, robotics, and digital platforms demand new skills and greater agility and adaptability from firms, workers, and policymakers.
“East Asia’s export-oriented labor-intensive growth lifted a billion people out of poverty in the last three decades, but the region now faces the twin challenges of trade protection and job automation,” said World Bank East Asia and Pacific Chief Economist Aaditya Mattoo.
“Reforms of the business climate and improvements in education could unleash a virtuous cycle between opportunity and capacity, leading to higher growth and better jobs.” (AT Network)
Follow Us at Google News and WA Channel