On Monday, the World Bank slashed the growth forecast for East Asia and Pacific to 5 per cent from its April forecast of 5 per cent. While China is expected to grow at 5.1 per cent this year, the rest of the countries are expected to slow down to 4.6 per cent from 5.8 per cent in 2022.
The Pacific countries are forecast to grow at a higher 5.2 percent among the region.
The EAP region is projected to grow by 4.5 percent in 2024.
The report also said that the services sector will be central to EAP's development in the medium and long term. The East Asia region has been characterized by a strong manufacturing industry, yet services are playing a growing, but often underappreciated role as key drivers of economic growth and job creation.
In this region, the service sector's shares in employment have been increasing since 2010 compared to the previous year, the report said. Consumer demand for services has also been changing as incomes increase and the population grows.
The World Bank says 'equipping workers with the relevant skills must be a priority' to get the most out of the service sector boom.