23/07/2017 06:04 AST
The economic growth prospects for development in Asia in 2017 have improved on the back of stronger-than-expected export demand in the first quarter of the year, according to a new report from the Asian Development Bank, ADB.
In a supplement to its “Asian Development Outlook 2017” report, ADB upgraded its growth outlook for the region from 5.7 per cent to 5.9 per cent in 2017, and from 5.7 per cent to 5.8 per cent in 2018. The smaller-than-expected growth in 2018 reflects its cautious view on the sustainability of this export increase.
“Developing Asia is off to a good start this year, with improved exports pushing up growth prospects for the rest of 2017,” said Yasuyuki Sawada, ADB’s Chief Economist, adding, “Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region’s economies are well-placed to face potential shocks to the outlook.” The combined growth of the region’s major industrial economies is forecast to remain at 1.9 per cent in 2017 and 2018. Improved forecasts for the Eurozone and Japan, due to robust domestic demand, have offset the slight downturn in growth in the United States to 2.2 per cent, from the previously projected 2.4 per cent, because of disappointing first quarter results in 2017.
Growth in East Asia has been revised to increase by 6.0 per cent in 2017 and 5.7 per cent in 2018, from the original projections of 5.8 per cent and 5.6 per cent respectively. After recent growth moderation, an increase in net exports and domestic consumption have improved growth prospects in the People’s Republic of China. The world’s second largest economy is now expected to expand by 6.7 per cent in 2017 and 6.4 per cent in 2018.
South Asia will remain the fastest growing sub-region in Asia and the Pacific, with its growth on track to meet the original projections of 7.0 per cent in 2017 and 7.2 per cent in 2018, according to the report. India, the sub-region’s largest economy, is expected to achieve its previous growth projections of 7.4 per cent in 2017 and 7.6 per cent in 2018, primarily through strong levels of spending.
The growth projection for Southeast Asia is expected to remain at 4.8 per cent in 2017 and 5.0 per cent in 2018, with accelerating growth in Malaysia, the Philippines and Singapore, although this trend is slightly dampened by the slower-than-anticipated expansion in Brunei Darussalam. Robust domestic demand, particularly in private spending and investments, will continue to support growth in the sub-region, according to the report.
This year’s outlook for Central Asia has also improved, as stronger domestic demand and exports in some countries have fuelled an unexpected recovery in the sub-region. Growth is expected to reach 3.2 per cent in 2017 and 3.8 per cent in 2018, compared to the original projections of 3.1 per cent and 3 per cent respectively.
The Gulf Today
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