Asian Development Outlook 2017 Update Highlights

Abstract

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes:In this publication, "$" refers to US dollars. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda The outlook for developing Asia supports optimism. Rather than the slight growth moderation forecast in Asian Development Outlook 2017 in April, this Update envisages a slight uptick this year. Growth in the region is set to pick up from 5.8% in 2016 to 5.9% this year and 5.8% in 2018. Excluding the high-income newly industrialized economies, the region is expected to expand by 6.4% in 2017 and 6.3% in 2018. An upturn in global trade is backed by strengthening recovery in the United States, the euro area, and Japan. Robust investments in developing Asia and higher growth in the People's Republic of China contribute to the healthy outlook. Risks to developing Asia's outlook have become more balanced since April. The US Federal Reserve announced its plan to begin winding down the assets it purchased in the wake of the global financial crisis of [2008][2009]. Analysis in the Update notes that clear communication from the Fed has avoided market overaction to the policy change, but authorities in developing Asia nevertheless need to prepare for tighter global liquidity. In an analysis of the business cycle, this Update notes that many economies are still in the accelerating phase...