Developing Asia’s Growth Outlook below forecasts at 5.8%

In an update of its flagship annual economic publication, Asian Development Outlook 2015 (ADO 2015), ADB now sees gross domestic product (GDP) growth for the region coming in at 5.8% in 2015 and 6.0% in 2016—below the March forecasts of 6.3% for both years.

The Asian Development Bank has lowered its 2015 economic growth forecast for Thailand, in light of slowdown in the Chinese economy.

The bank cut the 2015 and 2016 forecasts for Thailand to 2.7 per cent and 3.8 per cent, from previously projected 3.6 per cent and 4.1 per cent, respectively.

“Developing Asia is expected to continue to be the largest contributing region to global growth despite the moderation, but there are a number of headwinds in play such as currency pressures, and worries about capital outflows,”

said ADB Chief Economist Shang-Jin Wei.

“In order to be resilient to international interest rate fluctuations and other financial shocks, it is important to implement macroprudential regulations that, for some countries, may entail some capital flow management such as limiting reliance on foreign currency borrowing.”