VINACHEM

The Asian Development Bank still expects economic growth in the region to slow in 2018, it said in a new report on Wednesday, but the Manila-based lender raised its forecast for the current year by one-tenth of a percentage point.

In its Asian Development Outlook Supplement, the ADB maintained its projection for 5.8% growth for developing Asia in 2018, while hiking its estimate for 2017 to 6.0% from 5.9%.

"Unexpectedly strong expansion in Central, East, and Southeast Asia more than offsets a downward adjustment to growth for South Asia," the report said.

The ADB has kept its 2018 forecast for China, which accounts for roughly 60% of the regional economy, at 6.4%. Next year's outlook is slower than the upgraded 6.8% projection for 2017, with investment growth seen weakening further while China accelerates its shift toward consumption-led expansion.

"Lackluster investment growth in heavy industries with excess capacity will be only partly offset by strong investment in less capital-intensive emerging industries, consumer oriented industries and services," the bank said.

East Asia growth is projected to slow to 5.8% next year, as most economies in the subregion moderate, including South Korea, Taiwan and Hong Kong.

India is seen expanding by 7.3% next year, slightly lower than initially forecast, as higher crude oil prices could add fiscal pressures to the region's second-largest economy and investment growth is expected to remain soft, the report said.

For Southeast Asia, the ADB boosted its growth projections to 5.2% in 2017 and 2018. "The subregion is benefiting from robust investments and exports," the regional lender said.

Growth projections for next year were revised upwards for the Philippines, Thailand, Vietnam and Singapore.

The Philippines' growth prospects hinge on an acceleration in infrastructure spending, with large-scale projects expected to roll out in 2018. The ADB expects the Philippines economy to climb 6.8% in 2018, faster than the 6.7% forecast in September.

Meanwhile, the continued recovery of private consumption and the planned upgrade of provinces in Thailand's eastern seaboard will drive its economy to a 3.8% expansion for 2018, the bank said, above the 3.6% projection in September.

The ADB's outlook for the region covers 45 of its 67 member economies, which also include countries in Europe and North America.

- Nikkei -