APD | Economies in developing Asia and the Pacific survives external challenges

By APD writer Melo M. Acuna

MANILA, Dec.12 (APD) – The Asian Development Bank said economies in developing Asia and the Pacific “are weathering external challenges” due to robust economic demand as inflationary pressures are waning.

In a supplement to its Asian Development Outlook 2018 Update the Manila-based Asian Development Bank retained it regional growth forecast for 2018 at 6.0% and 5.8% for 2019.

Excluding the newly-industrialized economies of Hong Kong, China, the Republic of Korea, Singapore, Taipei, China, the regional growth outlook is maintained at 6.5% for 2018 and 6.3% for 2019.

In a statement released shortly before midday, the ADB said lower international commodity prices and central bank action to calm market volatility means inflation in developing Asia is forecast to be 2.6% in 2018 and 2.7% in 2019 from from 2.8 previously forecast for both this year and next.

“The truce on trade tariffs agreed by the United States of America (US) and the People’s Republic of China (PRC) is a very welcome but unresolved conflict remains the main downside risk to economic prospects in the region,” said ADB Chief Economist Yasuyuki Sawada.

“That said, we are keeping our forecasts for the region’s growth unchanged for this year with some of the biggest economies continuing to hold up well,” he further explained.

According to the ADB, growth in the People’s Republic of China, the second largest economy in the world, is still expected at 6.6% in 2018, moderating to 6.3% next year.

It has been noted growth momentum continues in India on rebounding exports and higher industrial and agricultural output. Growth is predicted at 7.3% in 2018 and 7.6% in 2019.

The gross domestic product in Central Asia in 2019 is now forecast at 4.3%, an increase from 4.2% forecast in September, as a recovery in public investment and higher output from the Shah Deniz gas field enhance prospects in Azerbaijan. South Asia’s 2019 growth is now pegged at 7.1 % versus the 7.2% forecast in September.

Southeast Asia is expected to growth 5.1% in 2019 against the previous forecast of 5.2%. The Pacific is on tract to expand 3.1% in 2019.

In 2017, ADB operations totaled US 32.2 billion, including US 11.9 billion in co-financing.

(ASIA PACIFIC DAILY)