ADB upgrades growth forecast for developing Asia to 5 Pct

TOKYO, July 17 (KUNA) -- The Asian Development Bank (ADB) on Wednesday slightly raised its economic forecast for developing Asia this year, as "rising regional exports complement resilient domestic demand." In its latest edition of Asian Development Outlook, the Manila-based lender revised up its April forecast for Asia's 46 developing economies in 2024 from 4.9 percent to 5.0 percent.

Developing Asia covers 46 economies in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific, but excludes industrialized countries of Japan, Australia and New Zealand. The growth outlook for 2025 is maintained at 4.9 percent.
"Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year " ADB Chief Economist Albert Park said in a statement, according to ADB's Website.
"The region's fundamentals remain strong, but policy makers still need to pay attention to a number of risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions," said Park.
"After a post-pandemic recovery that was driven mainly by domestic demand, exports are rebounding and helping propel the region's economic growth," the ADB said in the report.
However, it pointed out that uncertainty on the US election outcome, elevated geopolitical tensions and trade fragmentation, property market fragility in China, and weather-related events could hurt growth.
The ADB kept its gross domestic product (GDP) growth forecast for China, Asia's biggest economy, at 4.8 percent in 2024 and 4.5 percent in 2025.
"A continued recovery in services consumption and stronger-than-expected exports and industrial activity are supporting the expansion, even as China's struggling property sector has yet to stabilize," the ADB said.
The outlook for India, the region's fastest-growing economy, is also unchanged at 7.0 percent for fiscal year 2024 and 7.2 percent for 2025. India's industrial sector is projected to grow robustly, driven by manufacturing and strong demand in construction, the bank noted.
The ADB also maintained growth projection for Southeast Asia at 4.6 percent this year and 4.7 percent next year "amid solid improvements in both domestic and external demand." The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, it has now owned by 68 members, mostly from the region, as well as the US, the UK and Germany. (end) mk.rk.