East Asia and Pacific: A Region of Progress and Challenges

The East Asia and Pacific (EAP) region has experienced remarkable growth over the past two decades, lifting hundreds of millions of people out of poverty and transforming economies and lives. This progress is evident in the reduction of poverty rates, with 24 million people projected to escape poverty between 2024 and 2025. Many countries in the region have reached upper-middle-income status and are now striving for high-income status.

Challenges Ahead

Despite this progress, the region faces significant challenges. One of the major concerns is the need for job creation, as 320 million people are expected to reach working age over the next decade, while only 110 million new jobs are projected. Additionally, widening inequality within and across countries highlights the need to expand access to essential services such as education, healthcare, and social safety nets, particularly for the urban poor and rural communities. Rapid urbanization also increases the demand for transport connectivity, water and sanitation, and pollution management.

The Urgent Need for Sustainability

The region is also vulnerable to climate change, with 13 of the world’s 30 most climate-vulnerable countries located in EAP. Since 2000, the region has experienced 70 percent of the world’s natural disasters, affecting over 1.6 billion people. Therefore, adapting to extreme weather conditions and promoting resilience are critical. Meeting the rising demand for electricity at an affordable cost without significantly increasing greenhouse gas emissions requires an accelerated transition to clean and renewable energy sources.

World Bank Group’s Support

In fiscal year 2025, the World Bank Group approved $7.7 billion for 47 operations in the region, focusing on three key areas:

• Promoting long-term growth and job creation by partnering with governments and stakeholders to shape policies, enable innovation, finance investments, and catalyze private capital.
• Building human capital and strengthening pandemic preparedness through investments in education and healthcare.
• Building resilience by addressing climate risks, reducing pollution, supporting climate-smart agriculture, and transitioning to clean and renewable energy.

Achievements and Results

The efforts have yielded significant results, including:

• People: 142 million people have gained access to quality health, nutrition, and population services. Over 18 million people are benefiting from social safety net programs, and 17 million students are supported with better education.
• Prosperity: Over 36 million people and businesses have access to financial services, and about 19.5 million people, including women and youth, are benefiting from actions to expand economic opportunities.
• Planet: 15 million people have better water, sanitation, and/or hygiene, 21 million people have strengthened food and nutrition security, and almost 13 million people have enhanced resilience to climate risks.
• Infrastructure: Around 40 million people are benefiting from expanded sustainable transport infrastructure and services, over 13 million people have access to electricity, and 2.55 gigawatts of renewable energy capacity have been enabled.
• Digital:!54 million people are using digitally enabled services, and 1.5 million people can access broadband internet.

Conclusion

The East Asia and Pacific region has made significant strides in reducing poverty and transforming economies. However, challenges such as job creation, inequality, and climate change require urgent attention. The World Bank Group’s support focuses on promoting growth, building human capital, and enhancing resilience. The achievements in areas such as healthcare, education, economic opportunities, and environmental sustainability are noteworthy. Moving forward, it is essential for the region to continue on this path, addressing its challenges while building on its successes to ensure a more prosperous, equitable, and sustainable future for all.