Developing Asia to grow at a slower pace: ADB

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Manila street_Arno Maierbrugger
The Philippines is still growing stronger than its peers in Southeast. A street view in Makati, Manila. © Arno Maierbrugger

The Asian Development Bank (ADB) on July 16 cut its economic-growth forecast for developing Asia amid slower-than-expected growth in the US and China. The Manila-based bank said the region’s gross domestic product (GDP) was projected to grow by only 6.1 per cent from the original forecast of 6.3 per cent in its annual Asian Development Outlook published in March this year.

“With the US contracting in the first quarter and some underperformance within Asia and the Pacific, growth forecasts for developing Asia are adjusted down,” the supplemental report said.

It added that the growth outlook for Southeast Asia was trimmed to 4.6 per cent because Thailand, Indonesia, and Singapore’s economies disappointed in the first half, while subregional growth will likely accelerate next year to 5.1 per cent.

“Although the economy is on the path of recovery, expansion in private consumption has been gradual, and merchandise exports have contracted,” the report said, adding that “weak first-quarter growth, continued deterioration in the consumer confidence index, and the contraction of merchandise exports in the first five months of 2015 help guide the revision of the GDP growth forecast for 2015 down.”

The ADB also lowered predictions for Thailand’s GDP from 3.6 per cent in March to 3.2 per cent, but held its 2016 forecast steady at 4.1 per cent. Bank economists also drastically cut projections for inflation in Thailand from the early expectation of a 2 per cent increase in prices to a deflationary rate of -0.4 per cent. Full-year 2016 inflation prospects were cut from 2 per cent to 1.8 per cent.

Indonesia, the largest economy in Southeast Asia, is expected to grow at 5 per cent this year before rising to 5.6 per cent in 2016 as reforms of the new government take time to materialise and state spending slowed.

Inflation in the entire region in 2015 is now forecast to be a slightly lower at 2.4 per cent, compared to the 2.6 per cent seen in March.

Asian Development Outlook 2015 Supplement: Growth Prospects Soft
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Reading Time: 2 minutes

The Philippines is still growing stronger than its peers in Southeast. A street view in Makati, Manila. © Arno Maierbrugger

The Asian Development Bank (ADB) on July 16 cut its economic-growth forecast for developing Asia amid slower-than-expected growth in the US and China. The Manila-based bank said the region’s gross domestic product (GDP) was projected to grow by only 6.1 per cent from the original forecast of 6.3 per cent in its annual Asian Development Outlook published in March this year.

Reading Time: 2 minutes

Manila street_Arno Maierbrugger
The Philippines is still growing stronger than its peers in Southeast. A street view in Makati, Manila. © Arno Maierbrugger

The Asian Development Bank (ADB) on July 16 cut its economic-growth forecast for developing Asia amid slower-than-expected growth in the US and China. The Manila-based bank said the region’s gross domestic product (GDP) was projected to grow by only 6.1 per cent from the original forecast of 6.3 per cent in its annual Asian Development Outlook published in March this year.

“With the US contracting in the first quarter and some underperformance within Asia and the Pacific, growth forecasts for developing Asia are adjusted down,” the supplemental report said.

It added that the growth outlook for Southeast Asia was trimmed to 4.6 per cent because Thailand, Indonesia, and Singapore’s economies disappointed in the first half, while subregional growth will likely accelerate next year to 5.1 per cent.

“Although the economy is on the path of recovery, expansion in private consumption has been gradual, and merchandise exports have contracted,” the report said, adding that “weak first-quarter growth, continued deterioration in the consumer confidence index, and the contraction of merchandise exports in the first five months of 2015 help guide the revision of the GDP growth forecast for 2015 down.”

The ADB also lowered predictions for Thailand’s GDP from 3.6 per cent in March to 3.2 per cent, but held its 2016 forecast steady at 4.1 per cent. Bank economists also drastically cut projections for inflation in Thailand from the early expectation of a 2 per cent increase in prices to a deflationary rate of -0.4 per cent. Full-year 2016 inflation prospects were cut from 2 per cent to 1.8 per cent.

Indonesia, the largest economy in Southeast Asia, is expected to grow at 5 per cent this year before rising to 5.6 per cent in 2016 as reforms of the new government take time to materialise and state spending slowed.

Inflation in the entire region in 2015 is now forecast to be a slightly lower at 2.4 per cent, compared to the 2.6 per cent seen in March.

Asian Development Outlook 2015 Supplement: Growth Prospects Soft
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