Developing Asia to enjoy economic growth of 7.2 pct in 2006: ADB

Developing Asian economies will enjoy a strong growth of 7.2 percent in 2006, given a generally favorable environment, the Asian Development Bank (ADB) said in its annual forecast report issued in Manila on Thursday.

Widened trade surplus with the rest of the world, the continuing trend toward improved economic management and apparent resilience to high oil prices will be major positive factors to ensure Asian economic growth in the year, the Manila-based multilateral development bank said in its annual economic publication, Asian Development Outlook.

The Outlook projected the region to achieve an overall economic expansion of 7.2 percent in 2006, a marginal easing from 7.4 percent in 2005.

Growth projections for developing Asia as a region are heavily influenced by three key economies: China, India and Republic of Korea, which together have a combined weight of 66 percent of regional income, according to the Outlook.

The ADB said in the Outlook that China's growth was forecast to ease to 9.5 percent in 2006, as it saw the Chinese government's intention to focus on some of the social and environmental stresses that have emerged as a consequence of rapid economic expansion in recent years.

Meanwhile, India's economy was forecast to grow 7.6 percent in fiscal year 2006, slightly below the expected medium-term rate of growth, according to the report.

As to Southeast Asia, overall growth was expected by the ADB to change little from the 5.5 percent growth in 2005.

However, the ADB said that the profile of risks facing developing Asia remains much as before. Global payment imbalances, the HN51 virus (avian flu), yet higher oil prices or a surge in trade protectionism would unsettle the outlook, the report said.

The ADB's Asian Development Outlook 2006 made an assessment of recent economic performance for 43 developing member countries.

The 332-page publication features a new format for country chapters, including an expanded graphical presentation of information and a review of medium term (20062010) opportunities and constraints facing the region.

The publication also includes a special chapter, Routes for Asia's Trade, which explores future opportunities for Asia's trade.

Source: Xinhua