World Bank chief economist Justin Yifu Lin said on Monday that he was still confident that the East Asia and South Asia will still be the highest economic growth region in the world.
In the past two years, it was Asian economy that led the global recovery and the high growth in China, India and in the whole East Asia was very important for the world recovery from the severe financial crisis, Lin said during a briefing to the Council on Foreign Relations in New York.
Lin predicted the world economy will grow 3.3 percent in 2011 after a growth of 3.9 percent in 2010.
“Recovery is on the way, but there are still several uncertainties,” Lin said.
According to him, the uncertainties include high unemployment rate in developed countries such as the United States, Europe and to a degree, Japan; Europe’s sovereign debt crisis and the U.S. state debt; the short-term capital inflows into a number of middle-income emerging markets causing currency appreciations; the danger of equity and real estate bubbles; and also the high food, commodity, fuel prices, which can cause some kind of social tension as well as slowdown of the recovery for the growth in the middle-income countries.