Source: The Philippine Star
Softer growth prospects for China and a weak recovery in major
industrial economies are expected to push down economic growth in
developing Asia to 5.7 percent in 2016 and 2017, below previous
projections, according to an Asian Development Bank report released
Wednesday. The region's economy grew 5.9 percent in 2015.
The Asian Development Outlook 2016 said China's economic growth is
seen moderating to 6.5 percent this year from 6.9 percent last year and
to 6.3 percent next year. Slower exports, a falling labor supply and
supply-side reforms are reshaping the world's second-largest economy
toward more domestic consumption and a further reduction in excess
industrial capacity, it said.
The report says India will remain one of the fastest-growing major
economies, expanding by 7.4 percent in 2016 and 7.8 percent in 2017.
Last year, India's economy grew 7.6 percent, with strong public
investment boosting growth.
Southeast Asia's economy is set for stronger growth at 4.5 percent
this year and 4.8 percent next year, up from 4.4 percent in 2015. The
region will be led by its biggest economy, Indonesia, as it ramps up
investment in infrastructure and implements policy reforms to spur
"(China's) growth moderation and uneven global recovery are weighing
down overall growth in Asia," said Shang-Jin Wei, ADB's chief economist.
"Despite these pressures, the region will continue to contribute over
60 percent of total global growth."
He urged countries across Asia to implement reforms to boost
productivity, invest in under-supplied infrastructure, and follow sound
macroeconomic management to increase growth potential and insulate them
from global instability.
Aggregate growth in the United States, the euro area and Japan will
stay at 1.8 percent in 2016 and inch up to 1.9 percent in 2017, the