Developing nations in Asia to grow at 6% in 2017: ADB

Manila, Dec 13 The economies of developing countries of Asia are expected to record a six per cent growth in 2017, a decimal higher than the September-forecast, the Asian Development Bank said on Wednesday.

The bank, headquartered here in the Philippines, kept the 2018 GDP growth forecast at 5.8 per cent and attributed the elevated forecast for 2017 to stronger exports and domestic consumption, Efe news reported.

"Developing Asia's growth momentum, supported by recovering exports, demonstrates that openness to trade remains an essential component of inclusive economic development," ADB's Chief Economist, Yasuyuki Sawada, said in a statement.

According to the ADB, higher growth in Central, East and Southeast Asia compensated for the deceleration in South Asia, which continued to be the fastest growing region despite slowing down, with forecasts of 6.5 per cent for 2017 and seven per cent for 2018.

The bank predicted a 6.2 per cent growth in 2017 for East Asia, two decimal points higher than the earlier prediction, due to resilient consumption in China - where 6.8 per cent growth has been predicted - and maintained a 5.8 per cent forecast for the region in 2018.

For Southeast Asia, the forecast was 5.2 per cent for both 2017 and 2018, a rise of two and one decimal points, respectively.

The forecast for Central Asia has been revised from 3.3 to 3.6 per cent for 2017 while maintaining a 3.9 per cent prediction for 2018, while the Pacific region is expected to grow at 2.9 per cent this year and 3.2 per cent in the next, same as predicted earlier.

The ADB also revised forecasts for combined growth for the major industrial economies upward to 2.2 per cent for 2017 and two per cent for 2018, owing to strong domestic demand in the euro area, and private investment in Japan.