News / Economy

UN: Eurozone Recession, Slow US Growth Hits Asia-Pacific

An investor looks at an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China, December 14, 2012. An investor looks at an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China, December 14, 2012.
x
An investor looks at an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China, December 14, 2012.
An investor looks at an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China, December 14, 2012.
TEXT SIZE - +
Ron Corben
— A new United Nations economic survey says slower growth in China and India due to Europe’s downturn and weak U.S. growth undermines the Asia-Pacific economic outlook. The U.N.’s Economic and Social Commission for Asia and the Pacific (UNESCAP) says while regional growth will begin to recover in 2013, fewer people are likely to escape poverty amid a widening in income gaps.

Economists from the U.N’s Economic and Social Commission for Asia and the Pacific - UNESCAP -- say Europe’s recession and anemic U.S. growth are biting into the Asia-Pacific economies, especially China, the key regional economic driving force.

The agency's mid-year review, released Friday, lowers expectations for growth in the Asia Pacific to 5.6 percent for 2012 from an earlier 6.5 percent. But economists hope for a recovery in 2013.

China’s economic growth slowed to 7.8 percent this year - and Asia-Pacific economies dependent on China's growth for their own exports felt even greater pain.
 
Regional growth forecasts were cut by almost one percent.

Growth in economies such as Taiwan, South Korea and Hong Kong was directly affected by China’s slowing growth.

Asia fared better in the 2008 economic crisis than did Europe and the U.S. But Anisuzzaman Chowdhury, director of ESCAP’s macroeconomic policy and development division, says the region has been unable to avoid the effects of prolonged weakness and uncertainty in the large developed economies.

“Now having shown resilience after the crisis we are beginning to see the impact because there is a limit up to which you resist the problem in the eurozone countries [which] is still continuing and we don’t know when it’s going to be resolved,” said Chowdhury.

He says there also are concerns about widening income gaps in East Asia, as well as weak social protection mechanisms. He warns any slowing in East Asian growth leaves millions at risk of falling back into poverty.
 
"Even though we say that Asia-Pacific region has done very well in terms of reducing poverty it is true, but at least four million people are just above the poverty line and any small shock will push them back," Chowdhury said. "So that’s what it means to be sitting between $1.0 and $2.50 [day]. We need strong social protection to get them if they really fall.”

The report says the entire East Asian economy remains hampered by infrastructure shortages.

In 2013, the report forecasts that growth will remain below the region's potential with “strong headwinds persisting” - mainly China's continued slowdown, sluggish world trade and lower commodity prices.

You May Like

Multimedia Anti-Keystone XL Protests Continue

Demonstrators are worried about pipeline's effect on climate change, their traditional way of life, health and safety More

Thailand's Political Power Struggle Continues

Court gave Prime Minister Yingluck Shinawatra until May 2 to prepare her defense over abuse of power charges but uncertainty remains over election timing More

Malaysia Plane Search Tests Limits of Ocean Mapping Technology

Expert tells VOA existing equipment’s maximum operating depth is around 6 kilometers as operation continues on ocean bed for any trace of MH370 More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pet Kangaroo Helps Spread Environmental Messagei
X
Penelope Poulou
April 22, 2014 5:53 PM
Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pet Kangaroo Helps Spread Environmental Message

Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pro-Russian Separatists Plan 'Federalization Referendum' in Eastern Ukraine

Pro-Russian separatists in eastern Ukraine say they plan to move forward next month with a referendum vote for greater autonomy, despite the Geneva agreement reached with Russia, the U.S. and Ukraine to end the political conflict. VOA's Brian Padden reports from the city of Donetsk in Eastern Ukraine.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video International Students Learn Film Production in World's Movie Capital

Hollywood - which is part of Los Angeles - is the movie capital of the world, and many aspiring filmmakers go there in hopes of breaking into the movie business. Mike O'Sullivan reports that regional universities are also a magnet for students who hope to become producers or directors.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.