ADB low­ers 2016 growth fore­cast for de­vel­op­ing Asia China 2016, 2017 growth at 6.6%, In­dia growth cut to 7%

Kuwait Times - - BUSINESS -

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

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