World Bank warns that North Korean tensions are a threat to Asian growth
Singapore — The World Bank warned on Wednesday that surging tensions over North Korea’s nuclear programme could be a threat to robust growth in Asia. The bank predicted that developing East Asia and the Pacific would expand 6.4% this year, 6.2% next year and 6.1% in 2019, slightly better than their last forecasts in April. "Developing East Asia and the Pacific is doing better than most other developing regions of the world and is likely to continue to do so," said Sudhir Shetty, the bank’s chief regional economist. He cited "a favourable external environment and robust domestic demand" for the improved picture in the institution’s latest report. However, Shetty warned that tensions over North Korea could dent the positive momentum. Pyongyang has ramped up its weapons programme, conducting its sixth nuclear test and firing two missiles over Japan, and leader Kim Jong-un has been engaged in a heated war of words with US President Donald Trump. The tensions "have the potential to affec...
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