World Bank Sees South East Asian Currency Risk

The video discusses the economic growth in developing East Asia Pacific, which is expected to rise due to improvements in advanced economies. It highlights risks such as potential rapid normalization of monetary policies in advanced economies, which could affect East Asia due to increased private sector debt. The Federal Reserve's actions, particularly interest rate hikes, are examined for their impact on emerging markets. The video concludes with a discussion on how policymakers can prepare for these changes to minimize capital outflows and exchange rate pressures.

What is the expected growth rate for developing East Asia Pacific according to the transcript?

• 5.2%

• 6.4%

• 7.1%

• 8.0%

Which factor is highlighted as a risk for Southeast Asia due to increased private sector debt?

• Rapid normalization of monetary policies

• Natural disasters

• Trade wars

• Political instability

What percentage chance is there for a rate hike by the Federal Reserve in December?

• 66.4%

• 80.5%

• 50.2%

• 75.0%

Which country's currency is mentioned as being under pressure due to expected quantitative tightening?

• Malaysia

• Thailand

• Vietnam

• Indonesia

What is crucial for Southeast Asian policymakers to avoid substantial capital outflows?

• Being prepared for interest rate hikes

• Implementing stricter immigration policies

• Reducing public sector debt

• Increasing export tariffs