Economic growth surpasses ADB forecast for 2016-17

Southeast Asia’s growth is expected to remain at 4.8 percent in 2017 and 5 percent in 2018.

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Islamabad: On Thursday, the Asian Development Bank announced that Pakistan had achieved its highest growth rate of 5.28pc in over nine years.

The Asian Development Outlook (ADO) report published in April by the ADB had predicted a growth rate of 5.2pc in FY 2016-17 for Pakistan, but figures released by the finance ministry in end of May put the growth rate at 5.28pc.

ADB said the rise in growth rate had been supported by a resurgence in the agricultural sector, increase in activity of service sector and continued rise in construction. Manila based lender has forecast the economic growth for Pakistan to be 5.5pc for FY 2017-18.

The Manila, Philippines-based ADB upgraded its growth forecast for this year to 5.9 percent from an earlier forecast of 5.7 percent. It expects developing Asia to grow at a 5.8 percent pace in 2018, up from its earlier forecast of 5.7 percent.

“Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017,” said ADB’s chief economist Yasuyuki Sawada. “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”

South Asia will remain the fastest growing sub-region, with regional expansions projected at 7 percent in 2017 and 7.2 percent next year, the report said.

Southeast Asia’s growth is expected to remain at 4.8 percent in 2017 and 5 percent in 2018.