15:00 | 20/12/2017 Global Economy
The Asian Development Bank (ADB) forecasts in its latest report that Asia’s economy will expand by 6 percent in 2017, driven by stronger-than-expected exports and domestic consumption.
|A port in Tokyo, Japan - Source: AFP/VNA|
In a supplement to its Asian Development Outlook Update 2017 released on December 13, the ADB upgrades its 2017 GDP growth outlook in the region by 0.1 percent compared to its September forecast, while maintaining its 2018 forecast at 5.8 percent.
Combined growth for the major industrial economies is revised upward to 2.2 percent for 2017 and 2 percent for 2018, due to robust domestic demand in the euro area, and in Japan due to private investment and net exports, the report said.
Forecast of East Asian growth is revised up to 6.2 percent this year from the previous 6 percent, while the projection of 5.8 percent for 2018 is unchanged. Growth prospects of China, the world’s second largest economy, are also raised to 6.8 percent in 2017 and 6.4 percent in 2018, owing to resilient consumption.
South Asia is predicted to remain the fastest growing of all subregions in Asia and the Pacific, despite previous forecasts cutting growth from 6.7 percent to 6.5 percent in 2017. Its GDP expansion is expected to pick up to 7 percent next year.
Growth projection for Southeast Asia is put at 5.2 percent in both 2017 and 2018, up from the earlier forecasts in September of 5 percent and 5.1 percent, respectively. The subregion has been benefiting from stronger investment and export activities, with accelerating growth for Brunei, Malaysia, the Philippines, Singapore, and Thailand. Robust domestic demand - particularly private consumption and investment - will continue to support growth in the subregion, the report noted.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members, 48 from the region. In 2016, ADB assistance totalled 31.7 billion USD, including 14 billion USD in co-financing.