The Asian Development Bank (ADB) has cut its 2014 growth forecast for Southeast Asia to 4.7 percent from the April projection of 5 percent.

In its Asian Development Outlook Supplement issued on July 18, ADB said Thailand ’s political deadlock has affected domestic demand and tourism – a major currency earner of the country. The Thai economy contracted by 0.6 percent in the first quarter and is likely to continue the trend in the second quarter.

However, it said improved consumer confidence since the military takeover in May is a tentative sign that a modest recovery may take hold in the second half of the year.

ADB also said the East Sea tension between Vietnam and China impacted on their trade and the growth pace of Southeast Asian.

Meanwhile, Indonesia ’s growth rate slowed down to 5.2 percent in the first quarter due to soft external demand, low commodity prices, and a temporary ban on the export of selected minerals, the bank said.

ADB maintained the growth forecasts for Asia, covering 45 countries, at 6.2 percent in 2014 and 6.4 percent in 2015, adding that the growth outlook for this region is stable.-VNA