OECD expects slower growth in India, Southeast Asia, China

The economies of India, Southeast Asia and China were expected to grow at a slower pace than previously projected over the next five years due to uncertainty over trade disputes, geopolitics and climate crisis, the Organisation for Economic Co-operation and Development (OECD) said on Saturday.

The OECD's economic outlook presented at the Association of Southeast Asian Nations (ASEAN) summit here predicts a regional GDP growth of 5.7 per cent over 2020-24, down from 6.7 per cent in 2013-17, reports Efe news.

"Growth in the region is expected to remain buoyant in the medium term, although less impressive than in previous years," the biannual report said.

India's expected growth over the next five years is put at 6.6 per cent, compared to 7.4 per cent in 2013-17, while the OECD said that "the banking sector regains its footing".

For Southeast Asia, it forecast a growth of 4.9 per cent over 2020-24, slightly down from 5 per cent over 2013-17.

Meanwhile, China's expected growth over 2020-24 shows a wider gap at 5.6 per cent, down from 7.1 per cent in 2013-17.

Investment in the country has slowed while consumption has not picked up "in a lack of structural reforms to reduce precautionary savings," the report said.

The OECD highlights that the 12 countries in the region have offset lackluster export earnings with lower spending on imports, and have contained the volatility in financial flows, exchange rates and equity prices.

It added that although the region's exports were affected by broadening economic weakness in advanced economies, "compounded by the US-China trade tensions" and Brexit uncertainties, its growth is "anchored by the resilience of private consumption".

At the same time, it warns of the need for strengthening of local government involvement in disaster resilience initiatives to address environmental and climate risks, and the need to upgrade education systems to be internationally competitive in the digital era.

( With inputs from IANS )