The Asian Development Bank (ADB) has forecast higher gross domestic product (GDP) growth for China and India while expressing concerns about the impact of bullish oil prices on the Asian countries.

The Manila-based ADB said in a report release Thursday, " Developing Asia's healthy expansion is expected to continue, with growth projection of 6.6 percent in both 2005-06 and 2006-07."

The Asian Development Outlook (ADO) 2005 Update maintains an expectation of 6.9 percent growth for East Asia in 2005-06. For the rest of East Asia, growth is revised down to 3.8 percent due to slower export growth.

As to South Asia, the report states that the growth is on track for 2005, with India continuing to expand at a brisk pace, Pakistan posting its fastest growth in more than two decades, and Bangladesh growing steadily.

"India's outlook continues to look bullish in 2006, lifting the sub-regional average for South Asia to 6.6 percent compared to the 6.2 percent forecast in ADO 2005."

It has also revised growth projections for China, which carries a large weight in the regional aggregate, for both 2005-06 and 2006-07.

For the current fiscal, the multilateral body expects China to record 9.2 percent growth as against 9.5 percent last year and earlier expectations of 8.5 percent for 2005-06.

In 2006-07, China is expected to record 8.8 percent growth against earlier projections of 8.7 percent.

But the update says, "The overall outlook for developing Asia is more uncertain than earlier in the year, with some risks now being more accentuated."

As a large net oil importer and a comparatively energy- inefficient region, Asia is particularly vulnerable to high oil prices.

Other risks include the possibility that growth might slow in the United States and threats of virulent diseases and terrorist attacks.

Source: Xinhua