Business

ADB retains developing 
Asia's 5.9% growth forecast

MANILA: Developing Asia is on track to grow faster this year and next, the Asian Development Bank (ADB) said yesterday, buoyed by a pick-up in world trade and China's expansion, but the bank flagged risks from tightening US monetary policy.

Developing Asia is expected to grow by 5.9 per cent and 5.8 per cent in 2017 and 2018 respectively, the Manila-based lender said.

That is unchanged from its July estimates but higher than the 5.7 per cent forecast it gave for both years in its Asian Development Outlook released in April.

China is expected to grow 6.7 per cent this year and 6.4 per cent next year, the ADB said, unchanged from its July estimates.

"Growth prospects for developing Asia are looking up, bolstered by a revival in world trade and strong momentum in PRC (China)," ADB chief economist Yasuyuki Sawada said in a statement.

Mr Sawada said developing Asia should take advantage of favourable short-term prospects to invest in infrastructure, improve productivity and maintain sound economic policies to lift long-term growth.

However, the ADB trimmed its growth forecast for South Asia to 6.7 per cent this year and 7 per cent next year, compared with estimates of 7 per cent and 7.2 per cent made in July. - REUTERS

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