The Asian Development Bank (ADB) yesterday said China’s economy would grow slightly faster than expected this year, at 6.9 percent.
An ADB report said Asia’s developing economies remain resilient to economic weakness in industrialized countries and are on track to grow 5.8 percent this year and 6 percent next year.
It said the region’s growth is supported by vibrant private consumption and services in China. The ADB, which in September forecast China’s economy to grow 6.8 percent this year, kept next year’s forecast at 6.7 percent.
“Despite some softening in prospects for major industrial economies, developing Asia is poised to meet growth forecasts,” the report said. “Sluggish recovery in the US and further contraction of gross domestic product in Japan prompt downward revisions in the growth projections for these economies in 2015 and 2016,” it said.
In a supplement to the September 2015 Asian Development Outlook Update report, the ADB lowered this year’s growth projections for Japan to 0.5 percent from 0.7 percent in September, and to 2.5 percent from 2.6 percent for the US.
The ADB also downgraded its forecast for Taiwan’s GDP growth for this and next year.
Citing disappointing exports, the report said Taiwan’s GDP will grow 1 percent this year and 2.4 percent next year, slower than the 1.6 percent and 2.6 percent it had previously projected.
The ADB maintained its 2.7 percent growth forecast for South Korea this year, but revised its projection for next year from 3.4 percent to 3.3 percent.
Expanded industrial production in India and other countries also buttressed the regional economy even as countries reliant on commodities were hurt by the slump in prices, a slow US recovery and Japan’s contraction.
Southeast Asia’s growth prospects were unchanged from September’s forecasts of 4.4 percent for this year and 4.9 percent for next year, even as the ADB lowered projections for Indonesia, the Philippines and Singapore.
The report said Singapore’s GDP will expand 2 percent this year and 2.3 percent next year, slower than the 2.1 percent and 2.5 percent previously projected.
Additional reporting by CNA
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