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The Sri Lankan economy is forecast to grow by 6.8% in 2013 on the back of a strong performance in the first quarter of the year, the Asian Development Bank (ADB) said last week. According to its latest Asian Development Outlook Supplement, the country’s healthy growth in 2013 and acceleration to 7.2% in 2014 will be supported by further monetary easing and improved electricity generation that will power growth in domestic industry.
“By contrast, Afghanistan, Bangladesh, Nepal, and Pakistan are expected to report softer growth in 2013 than in 2012, as some of these countries face political transitions that could hamper economic policy making. The South Asia sub-region is expected to expand by 5.6% in 2013 (marginally less than the ADO 2013 projection of 5.7%) and pick up momentum to post 6.2% growth in 2014,” the Bank said in its review titled ‘Softening growth prospects for developing Asia’.
It noted that continued tepid demand from the major industrial economies coupled with slower growth in the People’s Republic of China (PRC) are weighing on the outlook for developing Asia with the 2013 growth forecast for the 45 developing member countries of ADB to hover around 6.3% with 2014 forecast to be 6.4%. In April, ADB had predicted the region to grow 6.6% this year and 6.7% next year.
“The drop in trade and scaling back of investment are part of a more balanced growth path for PRC, and the knock-on effect of its slower pace is definitely a concern for the region. But we are also seeing more subdued activity across much of developing Asia,” said ADB Chief Economist Changyong Rhee.
The PRC - home to developing Asia’s largest economy - is likely to see its economy expand 7.7% this year and 7.5% in 2014 after growth of 7.8% in 2012. The report notes that import and export growth has slowed given weak external demand, but notes continuing robust consumer confidence. Slower growth in the PRC has subdued the outlook for the entire East Asia region, as well as, to a lesser extent, for Southeast Asia, where the Philippines and other large ASEAN countries are otherwise seeing solid growth.
In India, meanwhile, slow progress in pushing through the reforms needed to ease business bottlenecks means growth is likely to be 5.8% this year, slower than the previously forecast 6.0%. ADB maintains its 2014 forecast of 6.5% for 2014.
nation.lk ::: - ADB forecasts economy to grow 6.8% in 2013
“By contrast, Afghanistan, Bangladesh, Nepal, and Pakistan are expected to report softer growth in 2013 than in 2012, as some of these countries face political transitions that could hamper economic policy making. The South Asia sub-region is expected to expand by 5.6% in 2013 (marginally less than the ADO 2013 projection of 5.7%) and pick up momentum to post 6.2% growth in 2014,” the Bank said in its review titled ‘Softening growth prospects for developing Asia’.
It noted that continued tepid demand from the major industrial economies coupled with slower growth in the People’s Republic of China (PRC) are weighing on the outlook for developing Asia with the 2013 growth forecast for the 45 developing member countries of ADB to hover around 6.3% with 2014 forecast to be 6.4%. In April, ADB had predicted the region to grow 6.6% this year and 6.7% next year.
“The drop in trade and scaling back of investment are part of a more balanced growth path for PRC, and the knock-on effect of its slower pace is definitely a concern for the region. But we are also seeing more subdued activity across much of developing Asia,” said ADB Chief Economist Changyong Rhee.
The PRC - home to developing Asia’s largest economy - is likely to see its economy expand 7.7% this year and 7.5% in 2014 after growth of 7.8% in 2012. The report notes that import and export growth has slowed given weak external demand, but notes continuing robust consumer confidence. Slower growth in the PRC has subdued the outlook for the entire East Asia region, as well as, to a lesser extent, for Southeast Asia, where the Philippines and other large ASEAN countries are otherwise seeing solid growth.
In India, meanwhile, slow progress in pushing through the reforms needed to ease business bottlenecks means growth is likely to be 5.8% this year, slower than the previously forecast 6.0%. ADB maintains its 2014 forecast of 6.5% for 2014.
nation.lk ::: - ADB forecasts economy to grow 6.8% in 2013
