The Asian Development Bank maintained its developing Asia growth outlook for 2017, but lowered its estimate for this year, citing a downgrade to India's forecast.
ADB downgraded its 2016 growth projection to 5.6 percent from 5.7 percent. For 2017, growth could be unchanged at 5.7 percent, the Manila-based bank said in its Asian Development Outlook 2016 Update report, released Tuesday.
"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 into the future," Juzhong added.
The lender trimmed the South Asia forecast for this year to 6.6 percent from 6.9 percent. The region's growth will improve to 7.3 percent next year, the ADB said.
India's growth outlook for this year was slashed to 7 percent from 7.4 percent due to weak investments, a slowdown in the country's agriculture sector, and the lack of available cash due to the government's decision to ban high-denomination banknotes.
However, the lender said the effects of the transition are likely to be short-lived and growth may accelerate to 7.8 percent in 2017.
East Asia's growth projections for 2016 and 2017 were maintained. Growth will reach 5.8 percent this year, with a slight moderation to 5.6 percent in 2017, the lender said.
China's GDP growth was forecast to hit 6.6 percent this year, driven by strong domestic consumption, solid wage growth, urban job creation, and public infrastructure investment. The forecast for 2017 was kept unchanged at 6.4 percent.
In Southeast Asia, growth forecasts remained unchanged at 4.5 percent for this year and 4.6 percent for next year. The Pacific will see growth of 2.7 percent this year, which is set to pick up to 3.3 percent in 2017.
The outlook for Central Asia was retained at 1.5 percent for this year and 2.6 percent for next year, as the ongoing recession in the Russian Federation and low global commodity prices for oil and natural gas continue to dampen growth in the subregion.
by RTT Staff Writer
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