ECONOMIC RE-FORECAST GIVES UP-TICK FOR ASIA
Economic growth prospects within Asia for 2017 have improved on the back of stronger-than-expected export demand in the first quarter of this year, according to a new Asian Development Bank (ADB) report.
In a supplement to its Asian Development Outlook 2017 report, ADB upgraded its growth outlook in the region from 5.7 per cent to 5.9 per cent in 2017, and from 5.7 per cent to 5.8 per cent for 2018. The smaller up-tick in the 2018 rate reflects a cautious view on the sustainability of this export push.
“Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017,” said Yasuyuki Sawada, ADB’s chief economist. “Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region’s economies are well-placed to face potential shocks to the outlook.”
Combined growth for the major industrial economies is forecast to remain at 1.9 per cent in 2017 and 2018. Improved forecasts for the euro area and Japan due to robust domestic demand have offset the slight growth downturn in the US. The US growth forecast is now 2.2 per cent, down from the previously projected 2.4 per cent as a result of disappointing first quarter results in 2017.
