ADO update projects India's economy to expand 8.5% in 2007-08
18 Sep '07
4 min read
Developing Asian economies will register solid economic growth in 2007, driven by fast growth in the People's Republic of China (PRC) and India, the Asian Development Bank (ADB) says in a new major report.
The PRC and India, which together account for 55.3% of the total gross domestic product (GDP) in developing Asia, recorded their fastest growth in 13 years in the first half of 2007 and 18 years in fiscal year 2006, respectively.
The Asian Development Outlook 2007 Update (ADO Update) says growth in Asia is now more broad-based as other regions like South Asia and Central Asia continue to post robust growth, and growth accelerates in other economies, such as Indonesia and the Philippines.
The report, however, warns that economic outlook for 2008 is hazy as uncertainty reigns in global financial markets and worries about the health of the U.S. economy mount.
The ADO Update foresees growth in Asia and the Pacific of 8.3% in 2007, up from an earlier estimate of 7.6%. Provided the global economy steadies, growth of 8.2% is anticipated in 2008.
While the jury is still out on the events unfolding in credit markets and the broader global economy, a sharp dive in Asia's economic growth still seems unlikely, it says.
“Developing Asia's defenses against external shocks are solid and it can weather a slowdown in the United States. The region's growth prospects will continue to depend on how well the countries address their internal challenges,” says Ifzal Ali, Chief Economist of the Manila-based multilateral development bank.
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