ADB says developing Asian economies holding steady

ADB says developing Asian economies holding steady

MANILA -- The Asian Development Bank says the economies of developing countries in Asia are holding up despite stubborn global headwinds, and that earlier forecasts that the countries as a group will grow 5.7% in 2016 and 2017 remain unchanged. The group grew 5.9% in 2015.

A bank report released on Tuesday said China, the world's second-largest economy, is expected to grow by 6.6% in 2016 and 6.4% in 2017, 0.1 percentage points more than was forecast in March, due to strong fiscal and monetary stimulus to boost domestic demand while external demand remains tepid.

The report says steady progress on reforms is helping India realise its growth targets, with earlier forecasts of 7.4% growth in 2016 and 7.8% in 2017 unchanged.

The India forecasts take into account a boost in private consumption after recent wage and pension increases and expectations of a healthy monsoon lifting rural incomes. A recovery in private investment will help drive growth to 7.8% in 2017, the report by the Manila-based bank said.

Growth in the five largest economies in Southeast Asia was forecast at 4.8% in 2016, the same as projected in March, with strong first-half performances in the Philippines and Thailand offset by a cut in forecasts for Indonesia, Malaysia and Vietnam.

Government investment in infrastructure, particularly in Indonesia, the Philippines and Thailand, has countered sluggish export demand and droughts that caused a drop in agriculture output in the first half of the year in the Philippines and Thailand, the report said.

Growth is forecast to accelerate to 5.0% in 2017 on expectation of firmer demand from major industrial economies, higher prices for exports, and rising infrastructure investment, it said.


Do you like the content of this article?
COMMENT