India and China have been anchor of global economic stability, posing a positive outlook for developing countries in the Asia-Pacific region in 2017, a UN study said today.
Progressive tax policies alongside better and effective economic governance can help economies in the region widen inclusiveness and move decisively towards sustainable development, it said.
The high and steady economic growth in Asia-Pacific is led by India and China, according to the Economic and Social Survey of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
As an year-end update, the survey finds resilient domestic demand and policy support resulting region’s developing economies growing at a steady pace of just below 5 per cent despite sluggish global economy and weak trade growth.
Launched in Bangkok by UN Under Secretary General and ESCAP Executive Secretary Shamshad Akhtar, the survey said there are some potential risks that should not be ignored.
“Bouts of financial volatility can re-emerge due to external policy uncertainties in major economies, including those related to the ‘Brexit’ negotiations in Europe and the new administration in the United States of America, as well as vulnerabilities on the domestic front, such as those on corporate and bank balance sheets,” she said.