ADB says India to grow at 5.5%, trims Asia forecast
Moneylife Digital Team 17 December 2014

Noting that reforms could boost India's growth further, ADB revised India's projected growth up from 5.3% to 5.5%

 

Weighed down by a slowing China, Asian developing economies were expected to grow at 6.1% this year, said the Asian Development Bank. However, the ADB also said that cheaper oil would be a buoy to growth.
 
“The declining oil prices represent a golden opportunity for many beneficial reforms, the Asian Development Bank (ADB) says in a new report,” the ADB said. ADB Chief Economist, Shang-Jin Wei said that since most economies were oil importers, they would benefit from the drop in oil prices.
 
Most Asian economies are strongly linked to growth in China. “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,” the ADB said about Chinese growth.
 
The ADB praised the removal of diesel subsidies and said that India's growth could reach 6.3% by next year if the government was willing to tackle contentious reforms.
 
“Falling global oil prices present a golden opportunity for importers like Indonesia and India to reform their costly fuel subsidy programs, On the other hand, oil exporters can seize the opportunity to develop their manufacturing sectors, as low commodity prices tend to make their real exchange rates more competitive," Mr Wei said.
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