The Asian Development Bank said Tuesday the region’s emerging economies would pick up this year but warned that the recovery remained fragile due to the eurozone crisis and tensions in Asia.
The Manila-based lender said in its latest forecast that the uptick in China’s economy and “robust growth” in Southeast Asia would lead expansion in the region, which would be also boosted by strong domestic consumption.
The ADB estimated that the gross domestic product (GDP) for developing Asia, which covers 45 nations, was set to grow at 6.6 per cent this year before edging up to 6.7 per cent in 2014.
The region’s growth slowed to 6.1 per cent last year – the lowest since 2009 when it saw 6.0 per cent expansion.
“Developing Asia’s recovery phase remains vulnerable to shocks,” the bank said in its Asian Development Outlook report.
“Strong capital inflows could feed asset bubbles. Political discord surrounding fiscal debates in the United States, austerity fatigue in the euro area, and border disputes in Asia could jeopardise macroeconomic stability.” The ADB said growth was expected across the region, with China’s GDP forecast to expand at 8.2 per cent this year, up from 7.8 per cent last year, on strong domestic demand and a better export performance.
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