Amidst China's economic slowdown, the policy makers from World Bank have estimated East Asia’s growth rate to be at 11-year lowest level and has subsequently suggested emerging economies of the region to focus on more stimulus measures to support the region’s growth. As forecasted by analysts, growth in East Asia, excluding Japan and India is expected to float around 7.2 percent for the year 2011. This is observed as a decline in economic prosperity in core East-Asian economies and amid increasing concerns over the economic slowdown the monetary authorities are also considering for further stimulus or monetary easing.

In a statement, the World Bank said, “As external demand has further moderated and inflationary pressures recede, there is some space for accommodative policies in most countries, and in case of a major external slowdown, sufficient fiscal space for stimulus.” Considering the economic slowdown in most of the world economies including Euro-zone, U.S and Asia, the World Bank is recommending the central monetary authorities of these economies to come up with additional or mixed quantitative easing mechanisms to support the economic growth via increased industrialization and ultimately supporting export oriented industries to enhance major economic indicators. Further, as current stimulus regimes have not yet created inflationary pressures in major economies (U.S, Japan for example); further measures are thus suggested to provide additional spur to the economic activities until the monetary expansion is uncontrollable.    

After slid of economic expansion to a three-year low level in the second quarter, China is expected to use “preemptive policy” to sustain its growth. With decline in Chinese economy and fall in exports amidst slowdown in major importing regions, China’s hope for its recovery seems to be correlated with the policies to come up from Chinese Central Bank. With the entire world watching on the expected monetary measures from Chinese authorities as suggested by international organizations, the future of China and entire East Asian region hangs on the policies and measures to evolve from the policy setters.