The forecast for economic growth in developing Asia in 2009 has been upgraded, as the region has proved more resilient to the global downturn than expected.
In an update to its Asian Development Outlook (ADO) 2009, published in March, the Asian Development Bank (ADB) today raised its forecast for growth this year from 3.4% to 3.9%.
In 2010, the growth projection is likewise upgraded to 6.4% from 6.0%. Stronger growth in East Asia and South Asia underpinned the improved prospects, says the ADB.
Economic growth in East Asia was upgraded to 4.4% in 2009, from the 3.6% projected in ADO 2009.
Aggressive monetary easing and the large fiscal stimulus package in the People’s Republic of China means it is now forecast to grow by 8.2% in 2009 and 8.9% in 2010, up from the March forecast of 7% and 8%.
Prospects for South Asia improved to 5.6% this year, up from the ADO 2009 forecast of 4.8% as the outlook for five of the eight sub-regional economies were upgraded. India’s growth was upgraded from 5% in March to 6%.