| THE Annual
Asian Development outlook report released by Asian development Bank (ADB)
has revealed that developing Asia's economic growth is expected to pick
up this year despite persistent weakness in the US and European economies
but the Manila-based bank warned that the recovery was vulnerable to shocks,
with political disputes emerging as the main threats.
Political
discord surrounding fiscal debates in the United States, austerity fatigue
in the euro area, and border disputes in Asia could jeopardise macroeconomic
stability.The report stated that gross domestic product (GDP) of Asia-Pacific's
45 developing economies was projected to expand 6.6 per cent in 2013 and
6.7 per cent in 2014, from last year's 6.1 percent.
Developing
Asia is bouncing back from the slowdown in the previous year, robust domestic
demand and greater reliance on regional trade will accelerate growth. Besides
a rebound in China and a solid performance in South-East Asia, which was
the only sub-region to enjoy faster growth last year, are also contributing
to the region's momentum. China, the second-largest economy in the world,
will again lead the region with expected growth of 8.2 per cent in 2013,
rebounding from 7.8 per cent in 2012. Growth will ease to 8 per cent in 2014,
the report said. South East Asia was expected to remain buoyant, with GDP
growth projected at 5.4 per cent in 2013 and 5.7 per cent in 2014.
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