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Business

Growth in Asia faces longer slowdown, ADB warns

In its latest economic outlook, the Asian Development Bank (ADB) has said it expects growth in Asia to slow down over the next two years. But while China looks set to be affected, there will also be outperformers.

Economic growth in Asia would not reach the same levels as last year mid-term, the Asian Development Bank (ADB) pointed out in its fresh economic outlook published Wednesday.

The Manila-based lender said gross domestic product for the whole continent was projected to expand by 5.7 percent in 2016 and 2017, down from 5.9 percent last year.

"China's growth moderation

and uneven global recovery are weighing down overall growth in Asia," the ADB report said.

"Risks are tilted to the downside as tightening US monetary policy may heighten financial volatility, and producer price deflation may undermine growth in some economies."

Protecting against instability

The lender emphasized, though, that despite these potential pressures, the region would continue to contribute over 60 percent of total global growth.

India was forecast to remain one of the fastest-growing economies in the next two years, with its GDP to expand by 7.4 percent this year and by 7.8 percent in 2017.

Indonesia looks set to lead growth in Southeast Asia as it ramps up investment in infrastructure and implements policy reforms.

ADB Chief Economist Shang-Jin Wei urged Asian governments to continue to implement reforms aimed at enhancing productivity and macroeconomic management with a view to insulating the region from global instability.

Watch video 02:52

Senior ADB official: Asian economies under pressure

hg/cjc (dpa, ADB)

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