Growth in developing East Asia and Pacific (EAP) accelerated slightly in 2017, reflecting the favorable global environment. Regional growth was faster than earlier expectations, reflecting higher than expected growth in China, as well as in Malaysia, Thailand, and Vietnam. On the back of recovering commodity prices and a rebound in global trade and manufacturing, the region’s exports grew strongly.
In early 2018, however, financial volatility has increased in response to the prospects of faster monetary policy tightening in advanced economies and escalating trade tensions. The growth outlook for the region remains favorable.