ADB lowers 2016 growth forecast for developing Asia China 2016, 2017 growth at 6.6%, India growth cut to 7%
The Asian Development Bank slightly lowered its 2016 growth forecast for developing Asia yesterday, reflecting slower-than-expected expansion in India. Developing Asia, which groups 45 countries in the Asia-Pacific region, is now expected to expand 5.6 percent this year, rather than 5.7 percent, the ADB said in a supplement to its Asian Development Outlook 2016.
The ADB trimmed its 2016 growth estimate for India to 7.0 percent from 7.4 percent due to weak investment, agricultural slowdown and the government’s recent demonetization.
But India’s growth forecast for 2017 was kept at 7.8 percent. The Manila-based lender kept China’s growth forecasts for this year and next at 6.6 percent and 6.4 percent, respectively. “Asian economies continue their robust expansion in the face of global economic uncertainties,” said ADB deputy chief economist Juzhong Zhuang. “Structural reforms to boost productivity, improve investment climate, and support domestic demand can help maintain growth momentum,” said Zhuang.
The growth estimate for Southeast Asia was kept at 4.5 percent for this year and 4.6 percent in 2017, supported by strong growth in Malaysia and the Philippines. Economies in South Asia are projected to expand by 6.6 percent in 2016, down from the previous estimate of 6.9 percent. For next year, growth in that region will bounce back to 7.3 percent, the ADB said. East Asia as a whole is seen to expand by 5.8 percent this year and 5.6 percent in 2017 as growth stabilizes in line with earlier forecasts.
The report said growth in the major Southeast Asian economies in the third quarter met projections and even surpassed them in Malaysia and the Philippines. The sub-region is forecast to expand by 4.5 percent in 2016, and picking up to 4.6 percent in 2017.
“Asian economies continue their robust expansion in the face of global economic uncertainties,” said ADB Deputy Chief Economist Juzhong Zhuang. “Structural reforms to boost productivity, improve investment climate, and support domestic demand can help maintain growth momentum.” ADB said the combined growth for the major industrial economies exceeded expectations, ticking up 0.1 percentage point to 1.5 percent in 2016. The growth forecast for 2017 is maintained at 1.8 percent, with robust consumer spending supporting the US economy, and monetary policy and improved labor markets fueling growth in the euro area. Japan’s expansion, meanwhile, will be buoyed by strong exports, despite a stronger currency, the report said. —Agencies
Qatar November inflation drops to lowest this year
Qatar’s Statistics Authority released the following November consumer price data yesterday, showing inflation at its lowest level this year. Housing and utility costs, which account for 22 percent of the consumer basket, rose 1.8 percent from a year earlier but food and beverage costs, which account for nearly 13 percent, dropped 3.4 percent.
BEIJING: Workers rest during lunch break outside a construction site at the Central Business District in Beijing yesterday. The Asian Development Bank on Tuesday trimmed its economic growth forecast this year for developing Asia to 5.6 percent. —AP
NANTONG: This picture taken on December 10, 2016 shows a woman working in a textile factory in Nantong in China’s eastern Jiangsu province. China filed a dispute resolution case with the World Trade Organization on Monday over the socalled ‘surrogate country’ approach used by the United States and the European Union to calculate anti-dumping measures applied to Chinese exports. —AFP