ADB lowers Asia’s growth forecast to 5.7%

The Asian Development Bank headquartered at Manila, has brought down the forecast of growth of Asia to 5.7% for the financial year 2016-17.

Flash points

• The Asian Development Outlook, a supplement of ADB has predicted the growth of Asian economy to be at 5.7%
• This was due to the reduced global demand and a slow Chinese economy
• Earlier the growth was predicted at 6%for 2016 in December,2015
• However the weak recovery in major industrial economies and softer growth prospects for the People’s Republic of China (PRC) have acted as reasons to bring down the projections

Projections for India

• It has remarked that India will be one of the fast growing economies in the world
• Due to the stall of certain development projects , the growth may dip to 4% but the reforms taken will increase the rate by 7.8% in 2017-18
• The economy will expand to 7.6% in 2016-17

Projections for China

• For China, the growth will decline from 9 per cent in 2015 to 6.5 per cent in 2016
• In 2017, growth will slow down to 6.3 per cent

Points to note

• ADB headquarters– Manila, Philippines
• President – Takehiko Nakao