Asia remains the most dynamic region of the global economy. Growth in the Asia-Pacific economies is expected to slow down slightly to around 5.3 percent during 2016–17. China’s economic transition towards more sustainable growth is critical over the medium term for both China and the global economy. Due to poor infrastructure and geographic susceptibility, most Asian and Pacific economies are more vulnerable to natural disasters and climate change. On the upside, regional and multilateral trade agreements could provide a boost to trade and growth. For instance, The Trans-Pacific Partnership (TPP), could benefit many economies in the region. However, it is still on the balance with the new American administration.
The fast-growing Asian economies are still struggling to associate growth with equality of opportunities, to broaden access to education and health and promote financial and gender inclusion.
A complex mix of global and regional and national forces has turned the Asia-pacific region into one of the most economically successful regions in the world. The same forces have developed hostile spots in the region that can escalate into full scale conflicts. South and East China Seas are the main spot of hostility that threaten the regional stability of the region. There are different territorial disputes across the region. There is a lack of multi-layered security architecture for the region, compensating for the failure of regional institutions.
