The growth outlook for developing Asia remains steady, even though momentum slowed in the second half of 2014, but the declining oil prices represent a golden opportunity for many beneficial reforms, the Asian Development Bank (ADB) said in a new report.
In a supplement to its Asian Development Outlook 2014 Update, ADB forecasted gross domestic product (GDP) growth for the region of 6.1percent in 2014, down from 6.2 percent expected in September, and 6.2 percent in 2015, down from 6.4 percent.
Developing Asia, comprising the 45 ADB developing member countries, grew 6.1 percent in 2013, it added.
Growth projections for Central Asia, East Asia, and Southeast Asia are revised downward, the report said adding there is no change for South Asia. The Pacific region’s growth outlook is adjusted upward.
Recovery in the major industrial economies of the United States (US), euro area, and Japan has been revised down slightly since the Update, as weak third quarter performance in Japan overshadows unexpected strength in the US.
The GDP growth in the advanced economies is now forecast to average 1.4 percent in 2014, down from 1.5 percent forecast in the Update, before picking up to 2.1 percent in 2015.
With oil and commodity prices falling, most developing Asian economies have revised their inflation forecasts downward. The forecast for the region is lowered to 3.2 percent in 2014 and 3.5 percent in 2015, from the Updates 3.4 percent and 3.7 perecnt.
