The Asian Development Bank (ADB) has trimmed its 2016 economic growth forecast for Asia to reflect slower-than-expected expansion in India.
The lender now projects that a group of 45 countries which it calls Developing Asia will grow by 5.6% this year.
That is slightly lower than its previous forecast of 5.7%. However, the ADB left its growth projection for 2017 unchanged at 5.7%
It says Asia’s economic outlook remains stable despite global uncertainties.
“Structural reforms to boost productivity, improve the investment climate, and support domestic demand can help maintain growth momentum into the future,” said ADB deputy chief economist Juzhong Zhuang.
The bank blamed the slight slowdown in India, one of the biggest economies in the region, for this year’s downgrade.