ADB predicts that the economy for developing Asian countries will grow by 6.2%

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BANGKOK, 1 April 2014  – The Asian Development Bank (ADB) has forecasted that the economy for developing nations across Asia will foresee continuous growth this year, up to 6.2 percent by the end of 2014, and as high as 6.4 percent by 2015. 

The ADB cited on their Asian Development Outlook 2014 report that economic risks have declined considerably and are at a manageable level. Meanwhile, the China economy is slowing down due to an economic structural reform that is taking place.

Regarding the Southeast Asian region, the ADB has a more negative outlook however, and cited several concerning factors that will impact the economy. For instance, the Cambodian labor dispute and the political unrest in Thailand are some major roadblocks that will hurt the growth of the economy. Therefore, the GDP growth for this region has been revised down to 5 percent, due to political conflicts and decreasing exports, which are some reasons that can lead to a period of economic stagnation.

As for the economy in 2014, the ADB predicts there will be not much change, as the export sector is still facing problems of reduced product demands. Nonetheless, the ADB remains confident that the Southeast Asian economy will grow up to 5.4 percent next year. The reasons attributing to their positive outlook is that inflation rates in Indonesia will decrease and the political tensions in Thailand will subside, which are key reasons to speed up economic recovery.