The Asian Development Bank (ADB) on Wednesday raised the economic growth forecast for developing countries of Asia and Pacific region in 2006 to 7.7 percent, a half percentage point up from its own yearly forecast in April.
ADB said in its Asian Development Outlook (ADO) 2006 Update, an economic report issued on Wednesday, that faster than expected GDP expansion in China and the larger South Asian economies has supported the revised forecast for "developing Asia" as a whole,
"Developing Asia's rapid growth is underpinned by strong performances by China and India, which together accounted for more than 50 percent of regional GDP," said Ifzal Ali, ADB chief economist, in launching ADB 2006 Update.
The upward revision for 2006 reflects accelerated growth in China due to booming investments and exports, said the report, which forecasts 10.4 percent growth for China in 2006.
Upward revision to growth forecasts of three South Asian economies - India, Pakistan and Bangladesh - on the back of strong export growth also fed the adjustment, the report said.
If China and India are removed from the calculation, the remaining countries of developing Asia are expected to grow by more modest averages, 5.5 percent in 2006 and 5.1 in 2007, it added.
For 2007, ADO Update forecasts growth of 7.1 percent for developing Asia, up slightly from the 7 percent forecast in April.
ADO Update is a supplement to ADB's annual publication Asian Development Outlook 2006, which was issued in April and forecast economic trends in the region. Among ADB's 66 members, 47 are from the region, which is called the developing Asia by the bank.