Developing Asia's economic growth is set to ease to a more manageable but still robust 7.6% clip this year and 7.7% in 2008 as the industrialized countries slow gradually, the Asian Development Bank said March 27. "These projections imply that growth will move to a more sustainable footing and that overheating pressures that surfaced in 2006 will gradually ease," said Haruhiko Kuroda, president of the Philippines-based ADB.
The bank said in its annual Asian Development Outlook report, released on March 27, that China's efforts to restrain galloping fixed asset investment are expected to gain more traction in 2007. Policy curbs and softer external demand should limit China's gross domestic product (GDP) growth to 10% in 2007 and 9.8% in 2008 compared to 10.7% last year.
East Asia as a whole will see growth of 8% this year and next after 8.7% in 2006. Southeast Asia growth will slow to 5.6% and 5.9% this year and next, after 6% in 2006 but Indonesia should pick up to 6% and 6.3%, after 5.5%, as interest rates are cut.
Growth in the EU and Japan would meanwhile be "close to potential."
Copyright Agence France-Presse, 2007