Expanding Economies in Asia Deliver 60% of Global Growth - ADB


Growth in China which accounts for roughly 60% of the regional economy will decelerate by 0.2 point to 6.5% in 2017 and slow further to 6.2% in 2018 as Beijing takes further steps to shift the country to a consumption-driven economy. Asia's developing economies will see steady growth this year and the next, though the evolving policies of Presiden.

Sawada said the region faces "risks from uncertain policy direction in the advanced economies, including the pace of interest rate normalisation in the United States". In its forecast in January, the International Monetary Fund said the Indian economy will grow 7.2% in 2017-18 and 7.7% in the next fiscal.

Overall growth in Southeast Asia is forecast to accelerate further with almost all economies in the region showing an upward trend.

"Developing Asia continues to drive the global economy even as the region adjusts to a more consumption-driven economy in the People's Republic of China", Yasuyuki Sawada, ADB's chief economist, said in a statement published yesterday.

"Because small enterprises generate a large share of India's exports, and are highly dependent on cash, demonetisation impeded exports of gems, jewellery, and garments for a few months before the situation normalised". "A continued commitment to reform - especially in the banking sector - will help India maintain its status as the world's fastest growing major economy".

About China the ADB's report maintained that the country's overall output is expected to slow down to 6.5 per cent in 2017 and 6.2 per cent in 2018, down from the 2016 figure of 6.7 per cent.

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Jurgen Conrad, head of the economics unit at the ADB China Resident Mission, said such efforts included continued financial reforms to attract savings to the most productive projects, encouraging investments in innovation and a movement toward higher technology in the production chain.

Commodity producers such as Malaysia, Viet Nam, and Indonesia will be boosted by the recovery of global food and fuel prices, the new report added.

In an annual report released by Asian Development Bank (ADB), India's GDP growth is predicted at 7.4% in FY 2017-18. The forecast is lower than the 6.8 percent actual growth in 2016 and is due in part to "high base effect" and the impact of higher commodity prices on domestic demand.

The Philippine Statistics Authority on Thursday revised upward the 2016 GDP growth to 6.9 percent from an earlier estimate of 6.8 percent on faster growth in sectors such as construction and mining and quarrying.

According to the U.S. financial daily, the rally in emerging markets reflects expectations that the U.S. Federal Reserve will raise interest rates only gradually in 2017.

Apart from the protectionist statements of Trump, the impact of positive economic data and the increment of USA interest rate will likely to affect the Philippine economy. "But at the same time, countries with more flexible exchange rate, if they have been operating around the economy potential, it will also have bear higher inflation pressures", Ramayandi said.