Asian Development Outlook Cites South Asia as Fastest Growing Subregion
13 December 2017
Economic expansion in developing Asia is expected to accelerate to 6% in 2017 on the back of stronger than expected exports and domestic consumption, according to the Asian Development Bank (ADB) report, Asian Development Outlook (ADO) Supplement: A Firmer Growth Outlook for Asia.
Excluding Asia’s newly industrialized economies—Republic of Korea, Singapore, Taipei, China, and Hong Kong, China—Asia’s growth outlook is upgraded from 6.4% to 6.5% for 2017. Growth outlook for 2018 remains unchanged at 5.8%.
Despite a downward revision from previous projections, South Asia will remain the fastest growing subregion in Asia and the Pacific. Downgraded from 6.7% to 6.5% for 2017, South Asia’s outlook for 2018 is set at 7%. GDP growth in India has been revised to 6.7% in 2017 and 7.3% in 2018. Strong expansion in manufacturing in India was coupled with rising crude oil prices, soft private investment growth, and weather-related risks to agriculture.
Price inflation in Asia and the Pacific is unchanged from previous projections of 2.4% in 2017 and 2.9% in 2018.
Openness to trade remains vital to inclusive economic development, says Mr. Yasuyuki Sawada, Chief Economist, ADB. He notes that investing in human capital and physical infrastructure will help sustain growth in developing Asia over the long-term.
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