ADB forecasts that economic expansion in developing Asia will accelerate to 6 per cent in 2017 as stronger than expected exports and domestic consumption fuel growth. Excluding Asia’s newly industrialized economies, growth is now expected at 6.5% this year, according to a new ADB report.
In a supplement to its Asian Development Outlook Update 2017 report, ADB upgrades its 2017 growth domestic product (GDP) outlook in the region by 0.1 percentage points compared to its September 2017 forecast, while its 2018 forecast remains unchanged at 5.8%. An unexpectedly strong expansion in Central, East, and Southeast Asia has offset a downward adjustment in South Asia.
In Viet Nam, growth prospects are revised upward to 6.7% in both 2017 and 2018 compared to previous forecasts of 6.3% and 6.5%, respectively.
The first three quarters of 2017 saw GDP grow by 6.4%, up from 5.9% in the same period of 2016. Agriculture recovered and grew by 2.8% in the first 9 months as drought eased in the Mekong Delta and the Central Highlands.
Industry and construction remained strong despite drag from the mining and oil subsector, which contracted by 8.1% in the first half of the year.
Manufacturing grew robustly, expanding by 12.8% in the first three quarters of 2017, the highest rate of growth in the sector since 2011. Fourth quarter manufacturing growth, traditionally the sector’s strongest, is likely to exceed growth over the first three quarters.
Driven by buoyant tourism and strong banking activity, services growth accelerated to 7.3% from 6.7% in the corresponding period in 2016.