The recent annual report by the OECD has been focused on the analysis of integration processes and economic development on the Asian continent.
The main attention has been surrounding ASEAN (Association of SouthEast Asian Nations) countries such as Indonesia, Singapore, Thailand, Cambodia, Malaysia, Myanmar, Philippines, Laos and Vietnam) and also on the two largest global economies: China and India.
According to OECD forecasts, these countries will also show further high rates of economic growth. The Gross Domestic Product (GDP) in this region will increase on average by 6.5% each year during the period 2015 – 2019.
Among the main economic problems of the countries, the report specifies lack of effective financial management, with a high level of bureaucracy and corruption. Stable economic prospects are predicted for Brunei-Darussalam and Singapore. Cambodia, Laos and Myanmar have shown prompt growth and will continue to do so within the next five years.
2014 has brought serious change in political status for Asia, and different countries have reacted differently to them. E.g. territorial disputes about Southern China’s Sea has negatively affected a flow of tourists and exports, some countries together with political disorders in Thailand having led to negative consequences.
Growing prospects of Asian countries remain, as China and India look attractive in medium-term prospect. Meanwhile, the region remains vulnerable for a number of risks, including issues caused by the monetary policy in the US, an economic reform in Japan, an unstable situation in the eurozone, and also internal risks, including political uncertainty and instability in some countries.
In general the budgetary balances in Asia is not expeted to strongly change though it is necessary to carry out reforms to further strengthen economic growth.