Growth in Asia-Pacific region driven by consumption and investments

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A train snakes its way through Seoul. UN Photo/Kibae Park

Developing economies in the Asia-Pacific region continue to fare well in comparison to the rest of the world, but structural weaknesses are holding back growth.

That's what the UN Economic and Social Commission for the region (ESCAP) is highlighting in a new report.

Cathrine Hasselberg has more.

The latest regional macroeconomic outlook report released by the Bangkok-based ESCAP on Thursday emphasizes that more inclusive economic growth is key to ensuring sustainable prosperity for all.

The UN says "inclusive growth" happens when benefits don't persistently and disproportionately accrue to one or more groups in society.

ESCAP's report also says growth in the region's developing nations will increase only slightly, to 5.9 per cent in 2015 compared to 5.8 per cent last year.

Here's Alfredo Calcagno from the UN Conference on Trade and Development (UNCTAD).

"What the report says is that this growth first is basically driven by consumption and investment, that means domestic factors rather than foreign demand, and that although it remains pretty high growth rates compared with the rest of the world, the reports says that this is below growth potential and also below growth rates before the 2008/2009 crisis."

According to the study, growth potential of Asia-Pacific developing economies is being held back by infrastructure shortages and the excessive commodity dependence of some countries.

Cathrine Hasselberg, United Nations.

Duration: 1’16″

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