SINGAPORE (ICIS)--Developing countries in Asia remain on track to post the 6.2% year-on-year growth this year despite the slower-than-expected growth in the US in the first quarter, the Asian Development Bank said on Friday.
The ADB in a report titled Asian Development Outlook (ADO) Supplement said it has maintained its April forecast for 2014 and has kept its projection of 6.4% in 2015 for the region’s 45 developing economies (please see table below).
The region posted growth of 6.1% in 2013, according to the bank,
“Developing Asia as a region continues to perform well,” said ADB deputy chief economist Juzhong Zhuang.
“The pace of the growth moderation in the People’s Republic of China (PRC) is in line with our expectations while the stage is set for India to pursue reform that could unlock its growth potential,” Zhuang added.
China is on track to meet the bank’s 2014 forecasts of 7.5% growth in 2014 and 7.4% in 2015, while India’s growth forecast for the fiscal year 2014 is maintained at 5.5%, according to the ADB.
"With parliamentary elections over, India is expected to pursue long-delayed reform," it said.
The ADB upgraded its fiscal year 2015 forecast for India by 0.3 percentage points to 6.3% “as anticipated reform bears fruit”.
India’s new government has outlined a plan to revive the Indian economy prioritising infrastructure and investment reforms, faster resolution of inter-ministerial issues, efficient policy execution, and policy stability, it said.
“While detail on the structural reforms remains limited, it is expected that greater political certainty will support a pickup in infrastructure investment,” the ADB added.
The outlook for southeast Asia has softened as growth prospects falter in Indonesia, Thailand, and Vietnam, the bank said.
The 2014 forecast for southeast Asia has been downgraded by 0.3 percentage points to 4.7%., the ADB said.
“As the factors slowing growth in 2014 are expected to be temporary, the forecast growth of 5.4% in 2015 has been maintained,” it added.
Developing Asian countries to post steady growth in 2014 - ADB
18 July 2014 03:39 Source:ICIS News