Pan Asia: Asia growth outlook brightens on strong exports: ADB – 20 Jul 2017

  • The Asian Development Bank raised its 2017 and 2018 growth forecasts for the region, reflecting rising exports as manufacturers of smartphones to cars to other consumer goods benefited from improving global demand.
  • Developing Asia – made up of 45 countries in the Asia-Pacific region – is expected to grow 5.9% and 5.8% in 2017 and 2018, the Manila-based ADB said in the update of its Asian Development Outlook on 20 Jul 17.
  • They are a step up from Apr 17 forecasts of 5.7% for both years. An upturn in global demand since late 2016 has given trade-dependent Asian economies much needed momentum, with the United States and Europe also showing improving growth.
  • The update of the Development Outlook raised China’s 2017 and 2018 growth forecasts to 6.7% and 6.4%, respectively, from 6.5% and 6.2%, driven by strong consumption and improving shipments.
  • China’s economy beat expectations with 6.9% growth in 2Q17, in part driven by firmer exports and production, which could heighten trade tensions as the United States and Beijing begin economic talks on 19 Jul 17.
  • “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,” Yasuyuki Sawada, ADB’s chief economist, said in a statement.
  • Inflation across the region is expected to remain under control, helped by well-behaved food and fuel prices, the ADB said. It cut 2016’s inflation projection to 2.6% from 3.0%, and 2018’s forecast to 3.0% from 3.2%.

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