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ADB: Growth prospects for developing Asia remain strong

27 September 2017 17:27 (UTC+04:00)
ADB: Growth prospects for developing Asia remain strong

By Kamila Aliyeva

The Asian Development Bank (ADB) has improved growth forecasts for the Central Asian developing countries.

Growth prospects for developing Asia remain strong, bolstered by a revival in world trade and strong momentum in China, according to the "Asian Development Outlook 2017 Update: Sustaining Development through Public-Private Partnership".

Gross domestic product (GDP) in the region is now expected to grow by 5.9 percent in 2017, a slight uptick from 5.8 percent in 2016 and 0.2 percentage points higher than the earlier forecast, according to the report.

ADB believes that the region is benefiting from a rebound in global trade, which is supported by firm recovery in the major industrial economies, and strong domestic investment demand.

“Growth in China that exceeds expectations is also lifting regional prospects. Developing Asia is forecast to maintain its growth momentum in 2018, expanding by 5.8 percent as strong trade linkages reinforce gains stemming from domestic demand. The forecast for growth excluding the newly industrialized economies is adjusted up by 0.1 percentage points to 6.4 percent in 2017 and 6.3 percent in 2018,” the report said.

The report revises downward the forecast for average inflation in the region, from 3.0 percent to 2.4 percent in 2017 and from 3.2 percent to 2.9 percent in 2018.

“Stable oil prices in the first half of the year helped to soften domestic fuel prices in the region, prompting downward revisions to inflation projections for some of the larger commodity importers,” ADB said.

Growth in the developing countries of Asia is due to the revival of trade.

The dollar value of the region’s exports surged by 11 percent in the first 5 months of 2017 over the same period in the previous year, and the value of its imports rose by 17 percent, according to ADB analysts.

This updated report revises up growth forecasts for Central Asia this year and next amid moderately rising oil prices, improving prospects for Russia and increasing remittances.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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