S Asian economy will grow by 6.1% in 2015: ADB
KATHMANDU, July 19: The Asian Development Bank (ADB) has said that the South Asian economy will grow by 6.1 percent in 2015.
Unveiling Asian Development Outlook (ADO) supplement on Friday, ADB has said that the improvement in Indian economy will push the south Asian economic growth. Though it had earlier projected the South Asian economy to grow by 5.8 percent, it has revised the forecast with ADO supplement.
“Sub-regional growth forecasts from the improved outlook in India, Nepal, Pakistan recorded growth in the fiscal year that ended in June that surprised on the high side,” the report said adding, “The improved outlook for India pushes up the 2015 forecast for South Asia from 5.8 percent to 6.1 percent.”
The report also said that Nepal saw a strong finish to its fiscal year 2013/14. Asian Development Outlook, 2014 has projected Nepali economy to grow by 4.5 percent though the government´s Central Bureau of Statistics (CBS) has projected that the economy will grow by 5.15 percent.
Developing Asia remains on track toward steady growth in 2014 despite slower-than-expected growth in the United States (US) in the first quarter, notes the ADB report. “Altogether 45 economies of this region will grow by 6.4 percent in 2015.”
“Developing Asia as a region continues to perform well,” the statement issued by ADB´s headquarters quoted its Deputy Chief Economist Juzhong Zhuang as saying. “The pace of the growth moderation in the People´s Republic of China (PRC) is in line with our expectations while the stage is set for India to pursue reform that could unlock its growth potential.”
The major industrial economies are expected to expand by 1.5 percent this year, a downward revision from 1.9 percent forecast in April´s ADO 2014. Softer US growth has been somewhat offset by Japan´s robust first quarter performance while the euro area has generally met expectations, the report further notes.
In East Asia, quarterly growth in China met ADB expectations with steady consumer demand, targeted government measures to stabilize investment, and a pickup in external demand in the second quarter of 2014. Both retail sales and industrial production have been picking up pace. Overall, China is on track to meet ADO 2014 forecasts of 7.5 percent growth in 2014 and 7.4 percent in 2015.
Likewise, the new government in India -- the first to hold a single-party majority in the lower house since 1984 -- outlined a 10-point plan to revive the Indian economy, prioritizing infrastructure and investment reforms, faster resolution of inter-ministerial issues, efficient policy execution, and policy stability.
Source: Republica
