World Bank East Asia and Pacific Economic
Update 2010, Volume 1 : Emerging Stronger from the Crisis

East Asia has recovered from the
economic and financial crisis. Largely thanks to China, the
region's output, exports and employment have mostly
returned to the levels before the crisis. Leading the global
economy, real gross domestic product (GDP) growth in
developing East Asia is poised to rise to 8.7 percent in
2010 after slowing from 8.5 percent in 2008 to 7.0 percent
in 2009. This report also identifies two common regional
agenda items for the medium term. First, the process of
regional integration, driven by Association of South East
Asian Nations (ASEAN) commitments to creating a single
economic area, will need to continue. Deeper regional
economic integration is now even more important, given
prospects for slower growth in advanced economies.
Behind-the-border trade barriers must be lowered, even in
the face of incipient protectionist pressures around the
world, including in the region. Deeper integration will
encourage agglomeration economies and intra-industry trade,
support sustainable urbanization, lower costs, and increase
international competitiveness. Second, addressing climate
change is high priority in the region. Mitigation measures
must be strengthened to improve land and water use, bolster
energy efficiency and conservation, and foster a much larger
role for renewable sources of energy. Moreover, with
investment rates in the region higher than in developed
countries, there is scope for East Asia to move rapidly to
the "green" technology frontier. Such a move will
give the region a competitive advantage in a sector poised
for rapid global growth. At the same time, the adaptation
agenda will require enhancing the region's cooperation
and disaster risk management frameworks. Institutional and
regulatory frameworks for improving the resiliency of
economic activity, reducing drought and flood risk, and
managing coastal areas and small islands, are critically needed.