The Asian Development Bank on Dec. 13 raised its growth forecast for developing Asia to 6% for 2017, up by one percentage point from its forecast in September.
The ADB cited "stronger-than-expected" exports and domestic consumption as growth drivers. For 2018, the ADB maintained its growth forecast of 5.8%.
China, which accounts for roughly 60% of the regional economy, is expected to grow 6.8% in 2017 from a previous projection of 6.7%. For 2018, the bank kept its initial forecast growth for China at 6.4%.
"Lackluster investment growth in heavy industries with excess capacity will be only partly offset by strong investment in less capital-intensive emerging industries, consumer-oriented industries and services," the bank said.
East Asia growth is projected to slow to 5.8% in 2018, as the economies of South Korea, Taiwan and Hong Kong experience moderate growth.
India, the region's second-largest economy, is seen expanding by 7.3% in 2018, even with slower investment growth and higher crude oil prices.
Robust investments and exports will boost Southeast Asia's growth to 5.2% in 2017 and 2018, said the ADB.
The ADB lowered its 2017 forecast for South Asia to 6.5% from previous projections of 6.7%. Growth is expected to pick up to 7% in 2018.
"Unexpectedly strong expansion in Central, East, and Southeast Asia more than offsets a downward adjustment to growth for South Asia," the report said.
