Growth remains strong across most developing Asia: ADB

April 3, 2019

Growth remains strong across most of developing Asia but is set to moderate this year and next year against the backdrop of slowing global demand and persistent trade tensions, according to a new Asian Development Bank (ADB) report Wednesday.

The latest Asian Development Outlook (ADO) 2019, ADB’s flagship economic publication, forecasts that growth in the region will soften to 5.7 percent in 2019 and 5.6 percent in 2020.

Developing Asia’s growth in 2018 was 5.9 percent. Excluding the newly industrialized economies of Hong Kong, China; Republic of Korea; Singapore; and Taipei,China, developing Asia is forecast to expand 6.2 percent in 2019 and a slightly slower 6.1 percent in 2020. In 2018, growth was 6.4 percent.

“Growth overall remains solid with domestic consumption strong or expanding in most economies around the region. This is softening the impact of slowing exports,” said ADB chief economist Yasuyuki Sawada. “Uncertainty clouding the outlook remains elevated.”

The Philippines’ economic growth is likely to quicken this year as strong domestic investment and consumption are expected to offset slowing demand from advanced economies and possible farm losses due to the dry spell brought about by the El Niño weather phenomenon.

ADB projects Philippine gross domestic product (GDP) growth at 6.4 percent in 2019 and 2020, up from 6.2 percent in 2018.

Low unemployment rate, a sustained rise in remittances, and slowing inflation all bode well for continued improvement in private consumption.

Increased public investments in social services and infrastructure will also greatly contribute to economic growth. DMS