HONG KONG (Yosefardi) – Although growth in South Asia is inching up, it remained the slowest growing subregion, with GDP expanding by 4.8% in 2013, says a new Asian Development Bank (ADB) report.
Growth patterns in Southeast Asia will be dominated by country factors. Subregional GDP decelerated to 5.0% in 2013 as soft export markets and slowdowns affected Indonesia, Thailand, and Malaysia.
Growth in Indonesia, the biggest of these economies, was dampened by policies the government adopted to subdue inflation after it sharply raised fuel prices.
Subregional growth is forecast to be similar in 2014, as gains from better export markets are offset by moderating domestic demand.
The outlook improves to 5.4% in 2015, with growth picking up in Indonesia after inflation ebbs, and Thailand’s economy rebounding if political disruption recedes.