A fruit vendor leans against a bicycle as he sleeps in the Zhujiang New Town district of Guangzhou.
Emerging Asia’s economic growth will probably accelerate in 2015 from this year, helped by increasing momentum in developed nations and withstanding a slowdown in China’s expansion, according to the Asian Development Bank.
The region will probably grow 6.4 percent next year from a 6.2 percent pace this year, the Manila-based lender said in its Asian Development Outlook 2014 today. China’s economy is forecast to expand 7.4 percent in 2015, slowing from 7.5 percent this year, it said.
“Developing Asia is growing steadily,” Joseph Zveglich, the bank’s assistant chief economist, said in an interview. “We’re expecting some pickup this year and next, helped by the recovery in major industrial economies particularly the U.S., with some balancing from moderating growth in China.”
U.S. consumer spending climbed in February by the most in three months amid a pickup in incomes, even as a purchasing managers’ index from HSBC Holdings Plc and Markit Economics indicated China’s manufacturing industry weakened for a fifth month in March. Emerging Asian economies from Indonesia to Malaysia grew more than estimated in the fourth quarter of 2013 as a global recovery boosted demand for the region’s goods.
Combined growth in the U.S., euro area and Japan may quicken to 2.2 percent in 2015 from 1.9 percent this year, the ADB said. India, Asia’s third-biggest economy, will probably expand 6 percent in fiscal year 2015 from 5.5 percent in the previous period, it said.
Developing Asia’s inflation is forecast to quicken to 3.7 percent in 2015 from 3.6 percent this year as authorities in some countries adjust subsidized fuel and power rates, the bank said. Lower consumer prices in Indonesia and receding political disruption in Thailand will probably allow Southeast Asia to expand 5.4 percent next year, compared with 5 percent in 2014, it said.