ADB raises 2017 growth forecast for developing Asia - Nikkei

In its latest Asian Development Outlook Supplement report published on Wednesday, the Asian Development Bank (ADB) raised its economic growth outlook for Asia in 2017, while maintaining its projection for 5.8% growth for developing Asia in 2018.

Key Points:

“Expects economic growth in the region to slow in 2018

The ADB maintained its projection for 5.8% growth for developing Asia in 2018 while hiking its estimate for 2017 to 6.0% from 5.9%.

The ADB has kept its 2018 forecast for China, which accounts for roughly 60% of the regional economy, at 6.4%. Next year's outlook is slower than the upgraded 6.8% projection for 2017

East Asia growth is projected to slow to 5.8% next year, as most economies in the subregion moderate, including South Korea, Taiwan, and Hong Kong.

India is seen expanding by 7.3% next year, slightly lower than initially forecast

For Southeast Asia, the ADB boosted its growth projections to 5.2% in 2017 and 2018.

Growth projections for next year were revised upwards for the Philippines, Thailand, Vietnam, and Singapore.”

The report said, "Unexpectedly strong expansion in Central, East, and Southeast Asia more than offsets a downward adjustment to growth for South Asia. Lackluster investment growth in heavy industries with excess capacity will be only partly offset by strong investment in less capital-intensive emerging industries, consumer-oriented industries, and services."