09:41 | 05/04/2016 Global Economy
Asia’s economy is forecast to grow 5.7 percent in 2016 and 2017, below the 5.9 percent projected in 2015 due to slow growth prospect for China and a weak recovery in major industrial economies.
Vegetables sold at a market in Shanghai, China - Photo: AFP/Vnanet
The forecast was released in a recent report of the Asian Development Bank issued on March 30.
The bank estimates that China will have modest growth at a rate of 6.5 percent in 2016 and 6.3 percent in 2017, compared to 6.9 percent last year due to slower exports, a falling labour supply and reduction in excess industrial capacity.
The bank believes India will remain one of the fastest-growing major economies with its gross domestic product (GDP) expanding by 7.4 percent in 2016 and 7.8 percent in 2017. The country saw an economic growth rate of 7.6 percent last year on the back of strong public investment.
South Asia’s economic growth is projected to see rates of 6.9 percent and 7.3 percent for 2016 and 2017, respectively.
Meanwhile, the ADB also estimates Southeast Asia's economy will see stronger growth at 4.5 percent in 2016 and 4.8 percent in 2017, up from 4.4 percent in 2015. Notably, Myanmar’s economy might enjoy a surge at 8.4 percent this year and 8.3 percent next year, due to more abundant investment to the country.
The bank anticipates economic growth of the East Asian region will see a slight drop at 5.7 percent this year and 5.6 percent in 2017, compared with 6 percent in 2015.
ADB’s chief economist Shang-Jin Wei evaluated that China’s moderate growth and an uneven global recovery are weighing down overall growth in Asia, however the region will continue to contribute over 60 percent of the total global growth./.