ADB upgrades Asia's growth forecast to six percent

TOKYO, Dec 13 (KUNA) -- Developing Asian economies will grow six percent in 2017, the Asian Development Bank (ADB) said Wednesday, higher than the 5.9 percent it forecast in September, as stronger-than-expected exports and domestic consumption fuel growth.
In its supplement to Asian Development Outlook Update 2017, the ADB maintained the 2018 projection at 5.8 percent for Asia's 45 developing economies, excluding Japan and other industrialized countries.
"An unexpectedly strong expansion in Central, East, and Southeast Asia has offset a downward adjustment in South Asia," the Manila-based lender said.
"Developing Asia's growth momentum, supported by recovering exports, demonstrates that openness to trade remains an essential component of inclusive economic development," said ADB Chief Economist Yasuyuki Sawada, according to ADB's press release. Meanwhile, it noted that "countries can further take advantage of the global recovery by investing in human capital and physical infrastructure that will help sustain growth over the long-term," said Sawada.
The bank revised upwards China's growth forecast to 6.8 percent this year from 6.7 percent estimate in September on resilient consumption, and kept its 2018 growth forecast at 6.4 percent.
It also downgraded India's GDP growth to 6.7 percent and 7.3 percent for this year and next, lower than the September estimates of 7.0 percent and 7.4 percent.
"Although the strong manufacturing expansion helped the economy reverse 5 consecutive quarters of deceleration in the second quarter of fiscal year 2017, the recovery is more subdued than assumed earlier due to rising crude oil prices, soft private investment growth and weather-related risks to agriculture," the ADB noted.
The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, it is owned by 67 members, mostly from the region, as well as the US, UK and Germany. In 2016, the bank assistance totaled USD 31.7 billion, including USD 14 billion in cofinancing. (end) mk.nam