Due to better-than-expected performance in the first half of 2017, World Bank projected China’s economic growth this year at 6.7 percent and 6.4 percent in 2018 in a latest report, both higher than previous forecasts of 6.5 percent and 6.3 percent. 

Official data showed that China’s GDP grew 6.9 percent year-on-year in the first half, underpinned by consumption and improving global markets. 

With China’s strong growth, improved global growth prospects and continued strong domestic demand, the World Bank sees better growth in the East Asia and Pacific (EAP) region this year, according to its EAP Economic update released on Wednesday. 

The bank also increased the EAP region’s GDP growth forecast to 6.4 percent for 2017 and 6.2 percent for 2018, up 0.2 percentage points and 0.1 percentage points respectively, the report said, noting domestic demand will remain the primary contributor to growth in most countries.

However, the report also noted several external and domestic risks could impact the positive outlook, including uncertain economic policies in some advanced economies and increased geopolitical tensions, as well as high private debts and rising fiscal deficits in many countries in the region. 

Therefore, structural reform is in need to yield long-term economic benefits.

"The improved prospects for global growth offer a window of opportunity for countries to reduce vulnerabilities while pursuing reforms that can yield growth dividends over the longer term," said Sudhir Shetty, World Bank Chief Economist for the East Asia and Pacific region. "Reducing risks to financial sector stability and strengthening competitiveness, including through deeper regional integration, remain priorities."

The report also highlighted that tourism development and deeper regional integration have the potential to offset the risks of protectionism. 

Growth in tourism, if well managed, will be able to yield substantial benefits to the region, including for the Pacific Island Countries, the report said.