Asian Development Outlook 2014 was released on 1 April 2014 by the Asian Development Bank. According to the ADB Outlook 2014, developing Asia is expected to extend its steady growth from 6.1 percent in 2013 to 6.2 percent in 2014 and 6.4 percent in 2015.
The outlook for the developing Asia has imporved because the associated global risks have eased and are now manageable. Also, the regional growth outlook will depend on continued recovery in the major industrial economies and on the People Republic of China managing to contain internal credit growth smoothly.
Highlights of the Asian Development Outlook 2014
• Developing Asia’s gross domestic product (GDP) expanded steadily by 6.1 percent in 2013 maintaining the same pace as in 2012.
• The major industrial economies (US, euro area members, and Japan) grew by a collective 1.0 percent in 2013. The momentum is expected to quicken to 1.9 percent in 2014 and 2.2 percent in 2015.
• People’s Republic China’s output grew by 7.7 percent in 2013 which is matching the performance of 2012.
• Soft global commodity prices continue to lighten pressure on consumer prices, allowing inflation to ease to 3.4 percent in developing Asia.
• The Asia’s current account surplus has flattened, after falling continuously since its peak in 2007.
• During the recent period of US quantitative easing, countries that allowed capital inflows to fuel real exchange rate appreciation and undermine their current account balances are most vulnerable to the risk of destabilizing capital outflows.
• For resource-dependent economies, commodity price swings matter more than volatile capital flows.
• Fiscal policy can help the region tackle rising inequality by fostering equality of opportunity.
• Public spending on education, health care, and direct transfers can contribute to equity, but Asia underspends not only the advanced economies in these areas but also its peers in Latin America.
• Strategic planning and innovative policies can contribute to more inclusive fiscal policy in Asia.