09 April 2013 09:20 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s emerging economies are expected to grow at a 6.6% rate this year, buoyed by a rebound in the Chinese economy, and robust growth in southeast Asia, the Asian Development Bank said in a report released on Tuesday.
“Domestic spending, in particular consumption, is the main driver of the recovery, and is a welcome shift from the reliance on the markets of advanced economies,” the multinational institution said in its Asian Development Outlook 2013 report.
GDP for developing Asia, which covers 45 nations, is projected to grow at a slightly faster pace of 6.7% next year. In 2012, the region posted a 6.1% growth, according to the ADB.
East Asia is expected to post a 7.1% growth this year and next year, led by China – the world’s second largest economy, it said.
China’s GDP growth is projected at 8.2% in 2013, up from a 13-year low of 7.8 % recorded last year, on the back of improving domestic demand and exports, “with spill-over benefits for neighbouring economies”, the ADB said.
The country’s growth will decelerate slightly to 8.0% next year, according to ADB’s projections.
South Asia’s growth is estimated at 5.7% in 2013 and will strengthen to 6.2% in 2014, led by India, which is expected post a 6.0% expansion this year, ADB said.
Meanwhile, Southeast Asia’s GDP growth is projected at 5.4% this year and at 5.7% in 2014, it said.
“The impending start-up of the ASEAN [Association of Southeast Asian Nation] Economic Community in 2015 will enlarge trade volumes within this bloc of dynamic economies, helping to diversify export markets,” the ADB said.
Looking ahead, the ADB warned that “political risks linked to wrangling over the US debt ceiling, fatigue over tough austerity measures in the eurozone, and long simmering tensions over border disputes in Asia present the main threats to the near term outlook”.
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