The World Bank, who gives loans and advice to developing countries, reduced the growth forecast this year for developing East Asian nation economies last Monday. The nations' governments were also urged to improve conditions for the exports and investments.

In the forecast released this April, a 7.1 percent will be expected for China and Southeast Asian economies. However, the recent change in the forecast puts that number down to 6.9 percent. Despite the change, however, the percentage still gives the region the world's most rapid economic growth.

Like Us on Facebook

Excluding China, the number should increase next year as the said developing economies should recover and if the exports' demand increase.

The region of East Asia "will continue to have the potential to grow at a higher rate - and faster than other developing regions - if policy makers implement an ambitious domestic reform agenda," said Axel Van Trotsenburg, The World Bank's vice president for the East Asian region.

Improving the export competitiveness of the region and removing barriers for domestic investments are some of the reforms Trotsenburg suggested.

The bank also says that China, Cambodia, Malaysia, and Vietnam are "well positioned" to increase their numbers on exports.

In the last growth forecast in April, Indonesia's growth percentage was 5.8. In the newer forecast made by the bank, the number was reduced to 5.2 percent due to the lower prices of commodities and smaller consumption of the government. Howeer, not all countries were forecasted to have a lower performance. From the 4.9 percent growth forecast last April, the number went up to 5.7 percent in the newer forecast for the other countries.

Also, growth in China will be slowed as the Chinese Government is currently trying to "balance" between fulfilling growth targets and minimizing growth risks. However, Chinese authorities have consistently mentioned that there are no current changes to its policies.

TagsThe World Bank, East Asia