"Despite some financial turbulence, growth in developing East Asia and Pacific (EAP) was resilient
during the first half of 2018. The growth outlook for the region remains positive. After peaking in
2017, growth in developing EAP is expected to slow modestly in 2018, as China's economic
expansion continues to moderate. However, downside risks have significantly intensified. An
escalation in trade tensions and heightened financial market turbulence, either due to an acceleration
in U.S. monetary policy normalization or contagion from other emerging markets could threaten the
region's growth prospects. To navigate uncertainty, developing EAP economies should reduce
short-term vulnerabilities and enhance buffers, redouble their commitment to an open, rules-based
international trade and investment framework, including through deeper regional economic
integration, and deepen structural reforms. The intensification of risks underscores the need to
continue to enhance economic security by investing in human capital