ADB forecasts slow growth in Asia
Asia’s economy is forecast to grow 5.7% in 2016 and 2017, below the 5.9% projected in 2015 due to slow growth prospect for China and a weak recovery in major industrial economies.
The bank estimates that China will have modest growth at a rate of 6.5% in 2016 and 6.3% in 2017, compared to 6.9% last year due to slower exports, a falling labour supply and reduction in excess industrial capacity.
The bank believes India will remain one of the fastest-growing major economies with its gross domestic product (GDP) expanding by 7.4% in 2016 and 7.8% in 2017. The country saw an economic growth rate of 7.6% last year on the back of strong public investment.
 |
South Asia’s economic growth is projected to see rates of 6.9% and 7.3% for 2016 and 2017, respectively.
Meanwhile, the ADB also estimates Southeast Asia's economy will see stronger growth at 4.5% in 2016 and 4.8% in 2017, up from 4.4% in 2015. Notably, Myanmar’s economy might enjoy a surge at 8.4% this year and 8.3% next year, due to more abundant investment to the country.
The bank anticipates economic growth of the East Asian region will see a slight drop at 5.7% this year and 5.6% in 2017, compared with 6% in 2015.
ADB’s chief economist Shang-Jin Wei evaluated that China’s moderate growth and an uneven global recovery are weighing down overall growth in Asia, however the region will continue to contribute over 60% of the total global growth.
