The Asian Development Bank (ADB) upgrades its growth outlook for Asia from 5.7 percent to 5.9 percent in 2017 and from 5.7 percent to 5.8 percent for 2018 (Photo: ABC)

Hanoi (VNA) – The Asian Development Bank (ADB) upgraded its growth outlook for Asia from 5.7 percent to 5.9 percent in 2017 and from 5.7 percent to 5.8 percent for 2018 in a new report released on July 19.

In a supplement to its Asian Development Outlook 2017 report, the ADB said economic growth prospects in developing Asia for 2017 have improved on the back of stronger-than-expected export demand in the first quarter of this year.

Growth prospects of China, the largest economy of the region, are also revised up from 6.5 percent and 6.3 percent to 6.7 percent and 6.4 percent in the next two years thanks to an increase in net exports and domestic consumption.

Yasuyuki Sawada, ADB’s Chief Economist said despite lingering uncertainties surrounding the strength of the global recovery, the region’s economies are well-placed to face potential shocks to the outlook.

Also according to the latest forecast, price inflation of Asia would be 2.6 percent in 2017 and 3 percent in 2018 compared to earlier estimates of 3 percent and 3.2 percent, respectively. Inflation is expected to be lower on the back of steady international oil and food prices.

Growth projections for Southeast Asia are expected to remain at 4.8 percent in 2017 and 5 percent in 2018.

According to the report, South Asia will remain the fastest growing of all sub-regions in Asia and the Pacific, with growth on track to meet original projections of 7.0 percent this year and 7.2 percent in 2018.

India, the sub-region’s largest economy, is expected to achieve previous growth projections of 7.4 percent in 2017 and 7.6 percent in 2018, primarily from strong consumption.

The outlook for Central Asia this year has also improved as domestic demand and exports have increased in some countries. Growth is forecasted to reach 3.2 percent and 3.8 percent in the next two years compared to the previous projections of 3.1 percent and 3.5 percent, respectively.-VNA