Events

Prof Alessandro Barattieri; Prof Aaditya Mattoo ; Prof Ergys Islamaj

World Bank

East Asia and the Pacific (EAP) is outperforming but underachieving. GDP growth in the East Asia and Pacific (EAP) region remains above the global average but is projected to slow down in 2025 and even further in 2026. The sluggishness is due to a less favorable external environment—rising trade restrictions, easing but still elevated global uncertainty, and slowing global growth—as well as persistent domestic difficulties. Amidst global turbulence, future performance will critically depend on how regional economies harness new technologies for development.  This presentation will focus on three dimensions of the interplay between innovation and reforms.

First, strong microeconomic foundations are critical for longer-term growth. Firms play a pivotal role in driving productivity, but leading firms in the region are not fully leveraging new technologies. Why? How can these firms catch up with global leaders? What can be done to spur productivity growth?

Second, the diffusion of digital technologies and policy reforms in the services sector are creating new economic opportunities while also enhancing human capacity to take advantage of these opportunities.  Can digitization turn services into a new engine of growth in a region that has relied heavily on manufacturing?  What are the impediments and how are they best addressed?

Lastly, new technologies such as robots, artificial intelligence, and digital platforms are in the process of transforming jobs. How will new technologies like robots, AI and digital platforms affect jobs in the region?  What can be done to ensure that growth continues to generate good jobs?