The Asian Development Bank (ADB) in its Asian Development Outlook Supplement, expects India to achieve April forecasts of 7.4% growth in 2017 and 7.6% in 2018 primarily from strong consumption. According to the report, South Asia is expected to remain the fastest growing of all sub-regions.
Developing Asia is now expected to grow by 0.2 percentage points higher than the rate previously envisaged at 5.9% in 2017. East Asia’s growth forecasts are revised up to 6% from 5.8% for 2017 and from 5.6% to 5.7% for 2018 on upward revisions for the People’s Republic of China (PRC), the ROK, and Taipei , China . Economic growth in the PRC has so far turned out to be stronger than expected in 2017, with official figures showing GDP growth in the first half at 6.9% (year on year).
In Southeast Asia, the growth outlook remains at 4.8% for 2017 and 5% for 2018 despite high growth in Malaysia , the Philippines , and Singapore . It is dampened somewhat by disappointing growth in Brunei Darussalam. Robust domestic demand, particularly private consumption and investment, will continue to support economies in the region.
The outlook for Central Asia in 2017 has improved with unexpected recovery in some economies driven by both domestic and external factors. While most hydrocarbon exporting economies in the sub-region are impacted by the lower oil price environment; growth in Armenia , Kazakhstan , and Tajikistan is benefiting from strong first quarter outcomes in manufacturing and mining.
Growth in the Pacific is expected to remain at 2.9% in 2017 and 3.3% in 2018 with Papua New Guinea — which is continuing its gradual recovery due to rebounding mining and agriculture industries.
Consumer price inflation in the region, meanwhile, is projected to be lower from the previous estimate on the back of steady international oil and food prices despite increasing demand due to enough supplies and favorable weather conditions. Price inflation is now expected to drop to 2.6% in 2017 and 3.0% in 2018 compared to the original projections of 3.0% and 3.2%, respectively.