China only bright spot as World Bank cuts ASEAN growth outlook

RCEP to deliver more gains than CPTPP, but risks U.S. economic distancing

Employees work on a production line manufacturing mechanical parts in Beijing. The World Bank expects the Chinese economy to grow 5.1% this year. © Reuters

FRANCESCA REGALADO, Nikkei staff writer

March 31, 2023 11:00 JST

Updated on March 31, 2023 11:44 JST

BANGKOK -- China will be the only bright spot in the Asia-Pacific region this year, with the World Bank lowering its growth forecast for ASEAN economies due to slowing domestic and export demand as well as slumping productivity.

The bank's latest economic outlook published on Friday warned of a productivity decline, particularly in Southeast Asian countries vying to be the region's manufacturing hubs, as the U.S.-China decoupling forces a rearrangement of global supply chains.