Committed to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 301 Sat. April 03, 2004  
   
Business


ADB raises growth forecast for developing Asia


Asia is expected to expand by more than previously forecast this year, with growth outside Japan set to rise to 6.6 percent, the president of the Asian Development Bank (ADB) said Thursday.

In what he described as informal estimates ahead of its official report later this month, Tadao Chino also said he believed Asia, excluding Japan, grew 6.2 percent in 2003.

The Manila-based institute last September forecast growth of 5.3 percent and 6.1 percent for 2003 and 2004 respectively, although upped its forecasts to 5.7 percent and 6.2 percent in December. Chino, in Berlin to attend an Afghanistan aid conference, said he expected Chinese growth to cool to 8.3 percent this year from 9.1 percent in 2003, compared with December's forecast of 8.0.

It foresaw growth in India slowing to 6.3 percent this year after 7.3 percent last year, unchanged from December.

The SARS flu epidemic capped growth in much of the region during the first half of last year, along with the sluggish world economy.

Yoshihiro Iwasaki, the head of the bank's regional economic monitoring unit, said the bank was more optimistic about stronger growth in Asia this year after the end of SARS and with a far more positive global economy.

"Domestic demand (in Asia) is strong and getting stronger... We have had avian flu, but so far that was not as bad as SARS," he said.

"The US recovery was not as convincing as it is now," he added. He noted also Japan experienced its best rate of growth for 13 years in the last quarter of 2003.