Reforms needed

The region has thrived despite an unsteady global recovery from the financial crisis, but many risks remain for the region, both in the short and long run, said Sudhir Shetty, Chief Economist of the World Bank's East Asia and Pacific Region.

"To address these risks, improving fiscal policy is key. With low oil prices, countries--whether oil importers or exporters--should reform energy pricing to usher in fiscal policies that are more sustainable and equitable," he suggested.

In most of the larger East Asian economies, efforts to bolster revenues and restructure spending can help fill the gap in infrastructure investments and create more funding for social protection and insurance programs, which are already under pressure amid rapid aging in the region.

As China shifts to a consumption-led, rather than an investment-led, growth model, the main challenge is to implement reforms that will ensure sustainable growth in the long run.

"Over the medium term, developing human capital and physical infrastructure is a key priority," it said, adding that countries should expand and upgrade physical infrastructure and improve public access to higher education and health care in the medium term.

In the long term, countries will need to find ways to sustain productivity growth, contain health care costs and expand the revenue base for social security, suggested the World Bank.