ADVERTISEMENT
News » Money
Sep 24, 11:42 PM EDT

ADB cuts growth forecast for Southeast Asia this year and next due to slower domestic demand


World Video

Buy AP Photo Reprints
Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Cuba announces details of currency unification, plans larger-denomination bills

US manufacturing index slowed in September but still points to continued growth

France's Socialists take axe to welfare spending with planned cuts in 2015 budget

Study: Gambling industry in US had $240 billion impact in 2013, employed 1.7 million

Obama to draw attention to economic recovery with Illinois speech

With eurozone inflation at near five-year low, European Central Bank under pressure to do more

Economy survey predicts strong business, government growth; consumer spending expected to lag

Economy's second-quarter rebound was even faster than thought, and outlook remains bright

Spain hopes to create 622,000 jobs by end of 2015, raises economic growth predictions

Survey finds conflicts, European economic weakness weighing on German consumers

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt
Related Stories
Hoke facing plenty of heat after another ugly loss for Michigan, this 1 to Minnesota

MANILA, Philippines (AP) -- The Asian Development Bank trimmed its economic growth forecast for Southeast Asia this year and next due to slower domestic demand in some of its bigger economies. Its forecasts for China, the world's second largest economy, were unchanged.

Southeast Asia's growth this year is now projected at 4.6 percent, down from an earlier forecast of 5.0 percent and actual growth of 5.0 percent in 2013, the development lender said Thursday.

Gross domestic product growth is expected to slow in Indonesia, the Philippines, Singapore, Thailand and Vietnam, but pick up in Malaysia where exports have rebounded.

Next year, better performance of major industrial economies and Thailand's recovery from its slump are forecast to spur Southeast Asian growth to 5.3 percent. ADB's earlier forecast was 5.4 percent.

The bank said 45 developing countries in Asia still comprise the world's fastest growing region and its stable growth masks shifting fortunes across subregions.

Growth forecasts for developing Asia as a whole were maintained at 6.2 percent this year and 6.4 percent next year, with upward adjustments in South Asia's growth counterbalanced by likely slowdowns in Central Asia and Southeast Asia. The region grew 6.1 percent in 2013.

China is still expected to grow 7.5 percent this year and 7.4 percent in 2015, as the bank projected in April.

"Slowing external demand has hurt some economies in the region but as a whole Asia and the Pacific is on track for firm growth in 2014 and 2015," said Shang-Jin Wei, ADB's chief economist.

The report said the world's major industrial economies which recorded virtually no growth in the first half of the year now forecast to expand 1.5 percent collectively this year, slightly down from the ABD's April forecast, before growth picks up to 2.1 percent in 2015.

India shows new promise of a turnaround with reforms expected to boost growth. The bank said it was maintaining its forecast of 5.5 percent growth for India this year, but is raising the forecast to 6.3 percent for next year from 6.0 percent.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

 
ADVERTISEMENT