by Marie Kauna – EMTV Online, Port Moresby
On Tuesday, Manila based organisation the Asian Development Bank, from its update of its annual economic publication, has predicted that Asia’s Gross Domestic Product (GDP) this year will expand by 5.8 per cent and 6.0 per cent next year, a drop from its March forecast of 6.3 per cent for both years.
According to ADB’s Chief Economist, Shang-Jin Wei, “developing Asia is expected to continue to be the largest contributing region to global growth despite the moderation, but there are a number of headwinds in play such as currency pressures, and worries about capital flows”.
The growth forecast for the two biggest economies of the region was cut by 4.0 per cent to cite a slower progress on major reforms that are hindering investment and slump in exports.
ADB said “it expected the pressure to ease once the recovery in the world’s advanced economies picks up, strengthening global demand”.
Despite concerns raised about growth development in the region, the region’s stock markets have risen.
