Cheap oil can benefit Asia - ADB Report

In a supplement to its Asian Development Outlook 2014 Update, ADB forecasts gross domestic product (GDP) growth for the region of 6.1% in 2014, down from 6.2% expected in September, and 6.2% in 2015, down from 6.4%. Developing Asia, comprising the 45 ADB developing member countries, grew 6.1% in 2013. Growth projections for Central Asia, East Asia, and Southeast Asia are revised downward. There is no change for South Asia. The Pacific region's growth outlook is adjusted upward, the ADB's press release reads. "While growth in the first three quarters of this year were somewhat softer than we had expected," says ADB Chief Economist Shang-Jin Wei, "declining oil prices may mean an upside surprise in 2015 as most economies are oil importers." Recovery in the major industrial economies of the United States (US), euro area, and Japan has been revised down slightly since the Update, as weak third quarter performance in Japan overshadows unexpected strength in the US. GDP growth in the advanced economies is now forecast to average 1.4% in 2014, down from 1.5% forecast in the Update, before picking up to 2.1% in 2015. The growth moderation in the People's Republic of China (PRC) is seen extending into the fourth quarter due to a continued real estate market correction and its spillover to the related sectors like construction. The PRC growth forecast is revised downward to 7.4% in 2014 from 7.5% in the Update, and to 7.2% from 7.4% for 2015. For full version