Connect with us

China

Reform and Other Secrets to Reaching Your Full (Economic) Potential

Published

on

You’re not living up to your potential.

It’s a phrase that generations of high-school students rolled their eyes at as their parents, relatives and guidance counselors prattled on. But it also applies to economies.

From a peak of 8.4% in 2007, the potential growth of Asia’s 22 largest developing economies has slipped nearly 2 percentage points, the Asian Development Bank estimated in a report released Wednesday.

Potential growth is a fancy way the dismal science has of tracking whether an economy is hitting on all cylinders, namely what it could do if it enjoyed full employment, stable inflation and otherwise operated at productive capacity. Racing above an economy’s potential tends to stoke inflation. Dragging along behind it spurs unemployment.

Not surprisingly, the Asian region is seeing more finger wagging from pundits and other self-appointed guidance counselors as it’s slipped further behind its potential growth rate since the global financial crisis. Sure, the whole world has, but that’s another story.

The picture isn’t monochrome, however. While 14 of those 22 economies have seen their potential growth decline — including South Korea’s 2.1 percentage point slide and China’s 1.1 percentage point drop — Indonesia, Pakistan, Uzbekistan and the Philippines all improved. Go to the head of the class.

Read the complete story here

Continue Reading
Click to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Top Posts

Recents

United States1 week ago

Huawei Sues the U.S. for Restricting Business With Federal Agencies

China1 month ago

Chinese investors spent $2.3 bln in Thai property in 2018

Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election. See author's...

China4 months ago

US–China trade war : will there be a winner ?

The U.S. and China are hours away from a new round of tariffs on each other’s goods, with no improvement...

Economics4 months ago

Trumping financial risks in Asia

Twenty years after the Asian financial crisis of 1997–98 and the global financial crisis of 2007–08, storm clouds are gathering...

Companies4 months ago

Thai Startup Event Banana

Event banana, a Thai start-up based on event venues and its online marketplace, has recently been able to raise about...

Business4 months ago

营商环境报告:东亚经济体继续大力推进改革议程改善营商环境

世界银行集团今天发布的《2019年营商环境报告:强化培训,促进改革》称,东亚太平洋地区各经济体继续大力推进改革议程,在过去一年里实施了43项改革以改善中小企业的营商便利度。 bsullivan See author's posts Related

News6 months ago

What are US-China Trade War Implications for Thailand ?

What are the implications of a US-China for Thailand? Will the economy be hit by global market disruption? Or could...

China6 months ago

China dominates Asian Economies

China, world’s second-largest economy stands tall with US$ 25.3 trillion and is up by 9% from 2017 followed by India...