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ADB keeps developing Asia growth forecast at 5.7 pct despite trade tensions

TOKYO, July 18 (KUNA) -- Developing Asia will maintain strong but moderating growth over 2019 and 2020, as supportive domestic demand counteracts an environment of global trade tensions, the Asian Development Bank (ADB) said Thursday.
In its Asian Development Outlook Supplement, the Manila-based lender maintained its April forecast of 5.7-percent growth in 2019 and 5.6 percent in 2020 for Asia's 45 developing economies, excluding Japan and other industrialized countries.
Deepening trade tension between China and the US remains the largest downside risk to this outlook, despite an apparent truce in late June that could allow trade negotiations between the two countries to resume, the ADB said. "Even as the trade conflict continues, the region is set to maintain strong but moderating growth," ADB Chief Economist Yasuyuki Sawada said, according to ADB's website. "However, until the world's two largest economies reach agreement, uncertainty will continue to weigh on the regional outlook," said Sawada.
The bank kept its growth forecast for China; Asia's biggest economy, at 6.3 percent in 2019 and 6.1 percent in 2020, pointing out that policy support offsets softening growth in domestic and external demand. The projection for South Asia, including India and Pakistan, is at 6.6 percent in 2019 and 6.7 percent in 2020, albeit lower than forecast in April.
The growth outlook for India has been cut to 7.0 percent this year and 7.2 percent next year because the fiscal 2018 outturn fell short, it said. The outlook for Southeast Asia has been downgraded slightly to 4.8 percent in 2019 and 4.9 percent in 2020 due to the trade impasse and a slowdown in the electronics' cycle.
The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, it is now owned by 68 members, with 49 from the region, as well as the US, the UK and Germany. (end) mk.hb