ADB lowers South-east Asia growth forecast

The economy contracted 0.6 per cent in the first three months of the year, as “political deadlock” hit domestic demand and the crucial tourism industry.

By (AFP)

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Published: Sat 19 Jul 2014, 10:32 AM

Last updated: Fri 3 Apr 2015, 7:26 PM

The Asian Development Bank on Friday downgraded its 2014 economic outlook for South-east Asia, citing political tensions in Thailand and Vietnam and soft external demand in Indonesia.

The Manila-based lender said in a supplement to its economic outlook for the region that it expected gross domestic product (GDP) to grow 4.7 per cent for the year, compared with its April projection of five per cent.

Indonesia’s growth for the first quarter of the year slowed to 5.2 per cent with low commodity prices and a temporary export ban on selected minerals slowing recovery in net exports, the bank said.

In Thailand, the economy contracted 0.6 per cent in the first three months of the year, as “political deadlock” hit domestic demand and the crucial tourism industry.

“Recent data suggest that South-east Asia has softened... as growth prospects faltered,” the ADB supplement said, adding that it sees growth of 5.4 per cent in 2015.

Its estimate for the gross domestic product (GDP) for developing Asia, which covers 45 nations, was unchanged at 6.2 per cent in 2014 and 6.4 per cent next year.


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