East Asia Pacific to grow 6.5 pct in 2015: World Bank

The East Asia Pacific region is expected to witness a 6.5 percent economic growth in 2015, moderating slightly from 6.8 percent of last year, according to an economic update released by World Bank on Monday.

The slight slowdown is attributed to a challenging global environment, according to the report.

The report points out that "the recovery in high-income economies remains gradual, global trade is growing at its slowest pace since 2009, and the widespread slowdown in developing countries has intensified."

Sudhir Shetty, Chief Economist for the East Asia and the Pacific Office, said at the press conference that there two key priorities across the region.

They are prudent macroeconomic management, aimed at shoring up external and fiscal vulnerabilities; and deeper structural reform, focused on encouraging private investment, said Shetty.

According to the report, China's economy is expected to grow at about 7 percent this year and gradually moderate thereafter, as its economy continues to shift toward a model more dominated by domestic consumption and services, which implies a gradual reduction of growth.

The rest of developing East Asia is expected to grow 4.6 percent, similar to last year.

Shetty pointed out that policy makers in the region should focus on structural reforms including regulatory improvements in finance, labor and products markets. Endi