Asian Development Outlook 2017 Update:
Year: 2017
Type: report
Abstract: The outlook for developing Asia supports optimism.Rather than the slight growth moderation forecast in Asian Development Outlook 2017 in April, this Update envisages a slight uptick this year.Growth in the region is set to pick up from 5.8% in 2016 to 5.9% this year and 5.8% in 2018.Excluding the high-income newly industrialized economies, the region is expected to expand by 6.4% in 2017 and 6.3% in 2018.An upturn in global trade is backed by strengthening recovery in the United States, the euro area, and Japan.Robust investments in developing Asia and higher growth in the People's Republic of China contribute to the healthy outlook.Risks to developing Asia's outlook have become more balanced since April.The US Federal Reserve announced its plan to begin winding down the assets it purchased in the wake of the global financial crisis of 2008-2009.Analysis in the Update notes that clear communication from the Fed has avoided market overaction to the policy change, but authorities in developing Asia nevertheless need to prepare for tighter global liquidity.In an analysis of the business cycle, this Update notes that many economies are still in the accelerating phase of their growth cycles, but that the pace of growth is weaker than the average of recent upturns.Additional policy support to remove constraints on productivity by, for example, closing infrastructure gaps may be needed to boost future output potential.Asia's infrastructure needs amounts to $1.7 trillion per year until 2030.However, even factoring in funds saved through public finance reform or received from multilateral agencies, a significant financing gap remains.The theme chapter in the Update explores how public-private partnership (PPP) can help to fill the infrastructure gap.The success of the approach depends on governments identifying projects suitable for it, engaging qualified private partners, and instituting the right process.The Asian Development Bank is a frontrunner in supporting the development of PPP in the region.Our experience has shown that, if the three conditions are met, all stakeholders in PPP projects can expect a fair share of the benefits.
Source: Asian development outlook update
DOI: 10.22617/fls179053-3
Author: Asian Development Bank
Language: English
Domain: Social Sciences
Open Access status: diamond
Funder: Asian Development Bank
OpenAlex ID: W4249189602