Bank predicts growth to remain

GROWTH in the Pacific is expected to remain at 2.9 per cent in 2017, and 3.3 per cent next year, with Papua New Guinea continuing its gradual recovery, according to Asian Development Bank.
In a supplement to its Asian Development Outlook 2017 report, the bank said PNG’s gradual recovery will be due to rebounding mining and agriculture industries.
Stronger tourism prospects were also expected to drive growth further in the region, particularly in Fiji and Palau.
Consumer price inflation in the region, meanwhile, is projected to be lower from the previous estimate on the back of steady international oil and food prices, despite increasing demand due to enough supplies and favourable weather conditions.
Price inflation is expected to drop to 2.6 per cent this year and 3 per cent next year compared to the original projections of 3 per cent and 3.2 per cent respectively.
Economic growth prospects in developing Asia for this year have improved on the back of stronger-than-expected export demand in the first quarter of this year.
The bank upgraded its growth outlook in the region from 5.7 per cent to 5.9 per cent this year, and from 5.7 per cent to 5.8 per cent for next year.
The smaller uptick in the 2018 rate reflects a cautious view on the sustainability of this export push.
“Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017,” ADB’s chief economist Yasuyuki Sawada said.
“Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region’s economies are well-placed to face potential shocks to the outlook.”