The economic growth in Asia-Pacific region is forecast to increase at 4.8 percent and 5 percent this year and the next, respectively, said a UN report launched Thursday.
The report, titled Economic and Social Survey of Asia and the Pacific 2016, said the economic outlook for developing Asia-Pacific economies is broadly stable but is clouded by uncertainties, and a confluence of macroeconomic risks continue to buffet the region.
According to the report, the risks included weak consumption and investment trends in major developing economies in the region, volatility in exchange rates, growing private household and corporate debt.
In such context, the next phase of Asia-Pacific economic growth should be driven by broadly-based productivity gains and further rebalancing towards domestic and regional demand, said the report.
The report is a publication of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), a regional development arm of the United Nations for the Asia-Pacific region.
ESCAP recommends that if the region is to shift to a more sustainable development strategy driven by domestic demand, greater focus must be placed on productivity along with commensurate increases in real wages.
A productivity-driven, wage-led approach would enable countries to increase their aggregate supply and demand, thereby enhancing well-being, according to ESCAP.