The outlook notes that foreign direct investment in the region has stayed strong, with positive impacts on job market prospects. Inflation trends vary partly due to variations in price support measures. Several central banks in the region have raised interest rates in response to the monetary normalisation of advanced economies, as well as price and exchange rate pressures. Looking ahead, maximising opportunities related to technology in financial services, strengthening export performance amidst rising protectionism and mitigating natural disaster risks are the main challenges to the region’s economic performance.
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A special chapter of the outlook analyses traffic congestion in Emerging Asia’s cities, on the back of rapid population growth, increasing ownership and use of private motor vehicles, and the lack of sufficient alternative travel modes such as public transportation. Congestion makes cities less efficient, imposing significant economic, social and environmental costs. “By strengthening policies for smart transportation, Emerging Asian countries could substantially improve living conditions in major urban areas and open new economic opportunities”, said Mario Pezzini, Director of the OECD Development Centre and Special
Advisor to the OECD SecretaryGeneral on Development, while launching the report at the 2018 ASEAN Business and Investment Summit in Singapore. Smart transportation systems are a priority for policy makers in Emerging Asia. They aim to provide innovative services relating to different modes of transport and traffic management and enable users to become better informed and make safer, more coordinated and smarter use of transport networks. Progress has been achieved in recent years thanks to regional initiatives; however, for many cities in the region, room for improvement is still ample.