ADB: Rise in exports boost Asia’s growth outlook

Stronger-than-expected export demand has improved growth prospects for Asia’s developing economies, including China, the Asian Development Bank (ADB) said yesterday.

ADB upgraded its growth forecast for this year to 5.9 percent from an earlier forecast of 5.7 percent. It expects developing Asia to grow at a 5.8 percent pace in 2018, up from its earlier forecast of 5.7 percent.

China’s economy, the world’s second biggest, is forecasted to grow at a 6.7 percent pace in 2017 and a 6.4 percent pace in 2018, the report said.

“Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017,” said ADB’s chief economist Yasuyuki Sawada. “Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region’s economies are wellplaced to face potential shocks to the outlook”

South Asia will remain the fastest growing sub-region, with regional expansions projected at seven percent in 2017 and 7.2 percent next year, the report said.

Southeast Asia’s growth is expected to remain at 4.8 percent in 2017 and five percent in 2018, with slower expansion in oil-dependent Brunei slightly offsetting faster growth in Malaysia, the Philippines and Singapore.

The Philippines is expected to grow at 6.5 percent this year and 6.7 percent next year, up from earlier forecasts of 6.4 percent in 2017 and 6.6 percent in 2018.