External demand is likely to remain weak, with trade

External demand is likely to remain weak, with trade

ZCZC
PRI COM ECO ESPL
.NEWDEL DCM87
UN-GROWTH 2 LAST
External demand is likely to remain weak, with trade
protectionist measures and sentiments, which are already on the rise, resulting in prolonged weakness in global trade and a drag on productivity growth, Akhtar said.
The report also pointed out rising income inequality arising out of non-translation of output expansion from globalisation and technology in recent years into commensurate rise in decent jobs in a number of Asia-Pacific countries.
“Progressive tax policies can be particularly effective in nurturing a more balanced society and reducing extreme inequalities,” Akhtar said.
The Asia-Pacific region as a whole has one of the world’s lowest tax revenues levels, at 17.6 per cent of GDP, with a relatively low share of direct taxes in the general tax mix.
“The region undergoes further structural transformation, efforts to lift productivity and innovation should be matched by measures to enhance worker skills and social protection,” the report said.
Fiscal policy should play proactive role to support domestic demand and meet long term priorities, it said.
Public infrastructure outlays are deemed particularly effective in addressing structural bottlenecks.
It will help in the current environment of weak external demand, weak private investment, low borrowing costs and benign inflationary pressures, according to the survey.
The UN body will explore role of better and more effective governance in improving development outcomes in its next such survey for Asia-Pacific in 2017, expected in April. PTI KPM MR
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